Delivery startup DoorDash seeks up to $ 2.8 billion IPO
(Bloomberg) –DoorDash Inc., the largest food delivery company in the United States, seeks to raise up to $ 2.8 billion in an initial public offering that is part of a rush to enroll in the United States at the end of the year.
The San Francisco-based company said in a filing Monday that it plans to sell 33 million shares for $ 75 to $ 85 each. At the top of that range, the company could be valued at around $ 32 billion, taking into account the outstanding shares listed on its record, as well as employee stock options and restricted stock units.
This valuation is an increase from when private investors valued DoorDash at around $ 16 billion in June. Its IPO price has not been finalized and could change further depending on demand for its shares during its investor roadshow over the next week.
DoorDash joins a group of consumer-focused web companies run by home rental platform Airbnb Inc. that have scheduled IPOs for December. The group includes video game company Roblox Corp., installment loan provider Affirm Holdings Inc. and ContextLogic Inc., the parent company of online discount retailer Wish Inc.
DoorDash has benefited from the pandemic-fueled boom in demand for meals brought to your door, as well as investor exuberance in the face of new stock quotes as it moves forward with its IPO.
When the company unveiled its prospectus earlier this month, it revealed a big increase in revenue this year and, more surprisingly, a profitable quarter.
For the first nine months of the year, DoorDash had revenue of $ 1.9 billion, more than triple the $ 587 million for the same period last year. Its net loss narrowed to $ 149 million, from $ 533 million for the period in 2019.
DoorDash was briefly profitable in the second quarter of this year–at the peak of home stay orders in major US cities–posting a profit of $ 23 million.
Co-founder and CEO Tony Xu owns a portion of DoorDash’s Class B super-voting shares, which each have 20 votes. He also has voting control over the rest of the 20-vote shares, which are split between his co-founders, Stanley Tang and Andy Fang.
DoorDash Enrollment Plans–as well as the entire application-based services industry–got a boost in November, when California voters approved a ballot measure overturning a state law requiring market economy companies to treat their drivers more like employees than contractors. Despite the victory, the company has indicated in its case that it could face other regulations or litigation that would affect its ability to keep its workers as less expensive independent contractors.
DoorDash’s offering is led by Goldman Sachs Group Inc. and JPMorgan Chase & Co., along with Barclays Plc, Deutsche Bank AG, RBC Capital Markets and UBS Group AG. DoorDash plans to list his actions on the New York Stock Exchange under the symbol DASH.