GrubHub raises expected IPO price range to $23-$25 per share

Tue Apr 1, 2014 11:09am EDT

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(Reuters) - GrubHub Inc (GRUB.N), the largest U.S. online food delivery services company, raised the expected price range for its initial public offering to $23-$25 per share from $20-$22.

The offering of 7 million shares is now expected to raise about $176 million, based on the top end of the price range, the Chicago-based company said in a regulatory filing on Tuesday.

GrubHub, backed by Spectrum Equity, Benchmark Capital and Warburg Pincus, is valued at about $1.95 billion at the top end of its expected price range.

GrubHub, which handles pick-up and delivery orders for restaurants online and via the phone, said it would sell 4 million shares in the offering. The rest are being offered by stockholders.

The company's revenue jumped 67 percent to $137.1 million in 2013.

GrubHub had about 28,800 restaurants and 3.4 million active users as of December 31 and processed an average of 135,000 orders daily last year.

The company is expected to debut on the New York Stock Exchange under the symbol "GRUB" on Friday.

Citigroup and Morgan Stanley are the lead underwriters to the offering.

(Reporting by Neha Dimri in Bangalore; Editing by Kirti Pandey)

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