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Deals

DoorDash doubles valuation to raise about $3.4 billion in U.S. listing

(Reuters) -DoorDash Inc said on Tuesday it sold shares in its initial public offering at $102 apiece, above its upwardly revised target range, to raise $3.37 billion in what will be one of the biggest U.S. stock market debuts of 2020.

The IPO gives the U.S. food delivery startup a fully diluted valuation of around $38 billion, more than double its $16 billion valuation during a private fundraising round in June.

DoorDash, the largest U.S. third-party delivery company for restaurants, had aimed to sell 33 million shares at $90 to $95 apiece. It had earlier targeted a price range of between $75 and $85.

The share offering comes as DoorDash and rivals Uber Eats, Grubhub Inc and Postmates Inc have benefited from a surge in demand for food delivery services due to widespread COVID-19 restrictions.

DoorDash joins other big Silicon Valley companies, including Palantir Technologies Inc and Snowflake Inc, that have had blockbuster IPOs, riding on a stock market rally in the second half of the year fueled by stimulus money and hopes of a COVID-19 vaccine.

DoorDash said its revenue for the third quarter ended September reached $879 million, up from $239 million in a similar period last year. The company posted a loss of $43 million after reporting its first quarterly profit of $23 million three months earlier.

Founded in 2013, DoorDash is backed by the Vision Fund managed by Japanese tech giant SoftBank Group Corp, venture capital firm Sequoia Capital and sovereign wealth fund Government of Singapore Investment Corp.

The company’s shares are set to start trading on the New York Stock Exchange on Wednesday under the ticker “DASH.”

Goldman Sachs and J.P. Morgan are the lead underwriters for DoorDash’s offering.

Reporting by Joshua Franklin in Miami and Chibuike Oguh in New York; additional reporting by Bhargav Acharya in Bengaluru; Editing by Chris Reese, Leslie Adler and Aditya Soni

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