DoorDash raises $4.5b in above-range IPO

NEW YORK • DoorDash raised US$3.37 billion (S$4.5 billion) in an initial public offering (IPO) above its marketed range, according to sources familiar with the matter.

The San Francisco-based delivery start-up sold 33 million shares on Tuesday for US$102 each after marketing them for US$90 to US$95, said the sources, who asked not to be identified as the information is not public yet.

At that price, DoorDash has a fully diluted value of about US$38 billion, which includes employee stock options and restricted stock units.

DoorDash’s IPO is one of the largest United States tech listings this year.

The company is part of a cadre of consumer-facing, Web-based businesses that are expected to go public this month – including home-rental platform Airbnb, which was set to price its IPO yesterday.

Others include video-game company Roblox, instalment loans provider Affirm Holdings and ContextLogic, the parent of online discount retailer Wish.

DoorDash has seized on the pandemic-fuelled boom in demand for meals brought to customers’ doorsteps, as well as investor exuberance over new stock listings, as it moves ahead with its IPO.

Revenue in the first nine months of the year more than tripled and its net loss narrowed from a year earlier on a surge in new customers, the firm said in the filing.

With DoorDash, companies have now raised more than US$160 billion in IPOs on US exchanges this year, an all-time high, according to data compiled by Bloomberg.

Several more are expected before the year end as companies that off listing plans during the early days of the Covid-19 pandemic regain the confidence to put their shares on public markets.

DoorDash’s offering is being led by Goldman Sachs Group and JPMorgan Chase & Co, with Barclays, Deutsche Bank, RBC Capital Markets and UBS Group also on the deal. Its shares were expected to begin trading yesterday on the New York Stock Exchange under the symbol DASH.

Comments are closed.