DoorDash aims to double valuation in much-awaited IPO

The full version of the article, along with thousands like it, can be found on the following page: DoorDash aims to double valuation in much-awaited IPO

Delivery Services

DoorDash Inc said on Monday it's aiming to raise up to $2.8 billion in an IPO, which could double the worth of their US food delivery start-up and also be one of 2020's biggest public market debuts.

DoorDash, the biggest US third-party delivery company for restaurants, intends to market 33 million shares priced between $75 and $85 apiece, it stated in a regulatory filing.

At the very top of its target range, the IPO would provide DoorDash a totally diluted valuation - which includes securities such as options and restricted stock units - of $31.96 billion, nearly twice the $16 billion DoorDash was worth at a June personal fundraising round. DoorDash's market capitalization at $85 per share would total $27 billion.

The hefty leap in DoorDash's valuation in a matter of months underscores the increased demand for meal delivery solutions throughout the COVID-19 pandemic, in addition to expectation of continued investor demand for new stocks which promise growth.

Companies have increased over $140 billion from the US so far in 2020, making it the largest year for IPOs, according to data from Dealogic.

Founded in 2013, DoorDash is backed by the Vision Fund handled by Japan tech giant SoftBank Group Corp, venture capital firm Sequoia Capital, along with the Government of Singapore Investment Corporation (GIC), Singapore's sovereign wealth finance.

DoorDash and rivals Uber Eats, Grubhub and Postmates have benefited from a surge in demand for meals delivery solutions due to widespread COVID-19 restrictions.

The company published a surge in revenue growth in 2020 and its first annual gain, it disclosed in its IPO filing earlier this season.

A number of large Silicon Valley names including Palantir Technologies Inc, Snowflake Inc and Unity Software Inc have gone public this year, riding on a stock exchange rally in the second half of the year fuelled by stimulus money and hopes of a successful vaccine to end the pandemic.

DoorDash's IPO along with a planned listing by house leasing start-up Airbnb Inc are set to make December a busy period for IPOs unlike in prior years and mark a strong finish to a blockbuster year for new listings.

It'd confidentially filed for an IPO in February.

Goldman Sachs and JP Morgan would be the lead underwriters for the offering.

The team at Platform Executive hope you have enjoyed this news article. Initial reporting via our official content partners at Thomson Reuters. Reporting by Anirban Sen and Noor Zainab Hussain in Bengaluru and Chibuike Oguh and Joshua Franklin in New York. Editing by Saumyadeb Chakrabarty and Lisa Shumaker.

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