Food delivery continues to climb due to consumers taking safer precautions during the ongoing pandemic. Delivery services like DoorDash are watching the markets’ ebb and flow, and are waiting for the right moment to jump. Recently, DoorDash announced it has set the terms of its initial public offering (IPO), announcing that it is looking to raise up to $2.81 billion.
The app-based food delivery company is offering 33 million Class A shares as part of its IPO, expected to be priced between $75 and $85 per share. According to MarketWatch’s report, the company will hold 286.3 million Class A Shares and 31.3 million Class B shares outstanding after the IPO, which would value DoorDash at up to $27 billion.
This valuation puts DoorDash above some of its competitors like Grubhub, which had a market capitalization of approximately $6.5 billion as of November 27.
DoorDash is expected to trade on the New York Stock Exchange (NYSE) under the ticker symbol “DASH.” The lead underwriters for the IPO are Goldman Sachs and J.P. Morgan.
As food delivery demand continues to climb, Deli Market News will report on the latest to keep you up to date.