DoorDash hits US$38bil valuation in IPO

NEW YORK: DoorDash Inc has raised US$3.37bil in an initial public offering (IPO) above its marketed range, kicking into high gear a year-end IPO surge of consumer-oriented companies that successfully navigated the coronavirus pandemic.

The San Francisco-based company sold 33 million shares Tuesday for US$102 each after marketing them for US$90 to US$95 each, according to a statement confirming earlier reports.

DoorDash has a fully diluted value of about US$38bil, which includes employee stock options and restricted stock units as detailed in its filings.

DoorDash’s IPO is the third-largest US listing this year, exceeded only by the US$4bil blank-check company backed by billionaire Bill Ackman and software maker Snowflake Inc’s US$3.86bil offering including so-called greenshoe shares.

The company is part of a cadre of consumer-facing, web-based businesses that are expected to go public in December -- including home-rental platform Airbnb Inc, which is seeking to raise as much as US$3.09bil in its IPO yesterday.

Others include video-game company Roblox Corp, installment loans provider Affirm Holdings Inc and ContextLogic Inc, the parent of online discount retailer Wish Inc.

Food delivery startup DoorDash has seized on the pandemic-fuelled boom in demand for meals brought to your door, as well as investor exuberance over new stock listings as it moves ahead with its IPO. — Bloomberg

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