Shares of DoorDash, a leading food delivery app, surged in its market debut on the New York Stock Exchange on Wednesday…
The company priced its shares at $102 a piece Tuesday night, above its range of $90 to $95. The stock began trading at $182 per share, giving it a market cap of $57.8 billion.
DoorDash, founded in 2013, now joins its competitors GrubHub and Uber at a key time. Food delivery has been a bright spot during the coronavirus pandemic, with people limiting their time outside of the home as much as possible.
After DoorDash’s initial pop, investors are valuing the company, on a revenue basis, at about twice as high as Uber. DoorDash is trading at just over 16 times revenue, if you project the latest quarter out over a full year, while Uber is trading just under 8 times sales.
DoorDash reported $1.9 billion in revenue for the nine months ended Sept. 30, according to its IPO filing. That’s up from $587 million during the same period last year. As its revenue grew, DoorDash also narrowed its net loss to $149 million over the same period in 2020. In 2019, DoorDash had a net loss of $533 million over the nine-month period.
In its prospectus, DoorDash said more than 390,000 merchants use the app.
The company, which ranked No. 12 on the 2020 CNBC Disruptor 50 list, trades under the symbol “DASH.” Goldman Sachs and J.P. Morgan are the lead underwriters for the offering, while SoftBank is the largest shareholder with about 20% stake, followed by Sequoia, which owns 16%.
Wednesday’s public offering kicks off a busy season for market debuts. Airbnb is set to go public…
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