March 24 GrubHub Inc said it expects to price
its initial public offering of 7.03 million shares at $20-$22
per share, valuing the largest U.S. online food delivery
services provider at up to $1.72 billion.
The Chicago-based company said the IPO is expected to raise
about $155 million, based on the top end of the price range. (link.reuters.com/rud87v)
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
The company is seeking capital to extend its network to more
cities across the United States to sustain growth.
GrubHub had about 28,800 restaurants and 3.4 million active
users in its network as of Dec. 31, and processed an average of
135,000 orders daily in 2013.
The company's revenue jumped 67 percent to $137.1 million in
2013, while net profit slid to $6.8 million from $7.9 in 2012.
GrubHub is the latest consumer dotcom name to tap public
markets in 2014. China's Twitter-like messaging service Weibo
Corp and Chinese e-commerce company JD.com Inc have filed for
IPOs in the United States.
Others expected to try and go public this year include cloud
storage provider DropBox and its more enterprise-focused rival
GrubHub, backed by Spectrum Equity, Benchmark Capital and
Warburg Pincus among others, said it expects to list its common
stock on the New York Stock Exchange under the symbol "GRUB".
The company, created through a merger of GrubHub and
Seamless last August, named Citigroup and Morgan Stanley as lead
underwriters to the offering.
(Reporting By Neha Dimri in Bangalore; Editing by Savio