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    Categories: Food and beverages

US food delivery major DoorDash raises $4.5 Bn in above-range IPO

Leading U.S. based food delivery giant, DoorDash, has reportedly raised USD 3.37 billion in an initial public offering (IPO) above its marketed range. As per credible sources, the company sold 33 million shares on December 8 for the price of USD 102 per share after marketing them for USD 90 to USD 95 each. At this price, DoorDash has a highly diluted value of around USD 38 billion, which comprises of restricted stock units and employee stock options.

Apparently, the food delivery start-up has capitalized upon the accelerating demand for food delivery due to the pandemic, as well as the eagerness of investors for new listings as the company moves forward with its IPO. During the filing, the company stated that its revenue over the first nine months of the year has more than tripled and its net loss has reduced as compared to the previous years owing to the significant rise in its customer base.

It has been reported that, including DoorDash, companies have raised over USD 160 million in IPO on the US exchanges in 2020, which is an all-time high, as per Bloomberg statistics. Several more are expected before the end of the year as companies that had delayed their listing plans earlier at the beginning of the pandemic regain confidence of putting their shares on public markets.

For the records, DoorDash's IPO is among the largest US tech listings this year. The firm is part of a consumer-facing, web-based business cadre which is likely to go public in December. These businesses include home-rental company Airbnb, which is poised to price its IPO soon. While, other listings comprise of installment loans provider Affirm Holdings, video-game company Roblox Corp, as well as ContextLogic, parent company for Wish, an online discount retailer.

DoorDash's offering is being led by JPMorgan Chase & Co, Goldman Sachs Group, with Deutsche Bank, Barclays, UBS Group and RBC Capital Markets also involved in the deal. Trading of DoorDash's shares are anticipated to start on Wednesday on the New York Stock Exchange with the symbol DASH.

Source credits: https://www.straitstimes.com/business/companies-markets/us-food-delivery-giant-doordash-raises-45-billion-in-above-range-ipo

Pankaj Singh:

Pankaj Singh holds a prestigious post graduate degree in management and finance and currently works as a content writer. He has worked previously as a U.K. insurance underwriter for a couple of years, and presently pens down content for cmferesearch.com and similar other online portals.

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