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The
IPO gives the U.S. food delivery startup a fully diluted
valuation of around $38 billion, more than double its $16
billion valuation during a private fundraising round in June.
DoorDash, the largest U.S. third-party delivery company for
restaurants, had aimed to sell 33 million shares at $90 to $95
apiece. It had earlier targeted a price range of between $75 and
$85.
The share offering comes as DoorDash and rivals Uber Eats,
Grubhub Inc and Postmates Inc have benefited from a surge in
demand for food delivery services due to widespread COVID-19
restrictions.
DoorDash joins other big Silicon Valley companies, including
Palantir Technologies Inc and Snowflake Inc, that have had
blockbuster IPOs, riding on a stock market rally in the second
half of the year fueled by stimulus money and hopes of a
COVID-19 vaccine.
DoorDash said its revenue for the third quarter ended September
reached $879 million, up from $239 million in a similar period
last year. The company posted a loss of $43 million after
reporting its first quarterly profit of $23 million three months
earlier.
Founded in 2013, DoorDash is backed by the Vision Fund managed
by Japanese tech giant SoftBank Group Corp, venture capital firm
Sequoia Capital and sovereign wealth fund Government of
Singapore Investment Corp.
The company's shares are set to start trading on the New York
Stock Exchange on Wednesday under the ticker "DASH."
Goldman Sachs and J.P. Morgan are the lead underwriters for
DoorDash's offering.
(Reporting by Joshua Franklin in Miami and Chibuike Oguh in New
York; additional reporting by Bhargav Acharya in Bengaluru;
Editing by Chris Reese, Leslie Adler and Aditya Soni)
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