DoorDash said Monday it is aiming to raise up to $2.8 billion in an initial public offering (IPO), which could double the value of the U.S. food delivery start-up and be one of 2020’s largest public market debuts.
DoorDash, the biggest U.S. third-party delivery company for restaurants, plans to sell 33 million shares priced between $75 and $85 apiece, it said in a regulatory filing.
At the top of its target range, the IPO would give DoorDash a fully diluted valuation — which includes securities such as options and restricted stock units — of $31.96 billion, nearly double the $16 billion DoorDash was worth in a June private fundraising round. DoorDash’s market capitalization at $85 per share would total $27 billion.
The hefty jump in DoorDash’s valuation in a matter of months underscores the increased demand for meal delivery services during the covid-19 pandemic, as well as anticipation of continued investor demand for new stocks that promise growth.
Companies have raised over $140 billion in the United States so far in 2020, making it the biggest year ever for IPOs, according to data from Dealogic.
Founded in 2013, DoorDash is backed by the Vision Fund managed by Japan tech giant SoftBank Group, venture capital firm Sequoia Capital, and Singapore’s sovereign wealth fund.
DoorDash and rivals Uber Eats, Grubhub and Postmates have benefited from a surge in demand for food delivery services because of widespread covid-19 restrictions.
Source: Washington Post
