DoorDash doubles valuation to lift about $3.4 billion in U.S. itemizing

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© Reuters. A supply particular person for Doordash rides his bike within the rain in the course of the coronavirus illness (COVID-19) pandemic within the Manhattan borough of New York Metropolis

By Joshua Franklin and Chibuike Oguh

(Reuters) -DoorDash Inc mentioned on Tuesday it bought shares in its preliminary public providing at $102 apiece, above its upwardly revised goal vary, to lift $3.37 billion in what will likely be one of many greatest U.S. inventory market debuts of 2020.

The IPO offers the U.S. meals supply startup a totally diluted valuation of round $38 billion, greater than double its $16 billion valuation throughout a non-public fundraising spherical in June.

DoorDash, the most important U.S. third-party supply firm for eating places, had aimed to promote 33 million shares at $90 to $95 apiece. It had earlier focused a worth vary of between $75 and $85.

The share providing comes as DoorDash and rivals Uber (NYSE:) Eats, Grubhub Inc and Postmates Inc have benefited from a surge in demand for meals supply companies resulting from widespread COVID-19 restrictions.

DoorDash joins different massive Silicon Valley corporations, together with Palantir Applied sciences Inc and Snowflake Inc, which have had blockbuster IPOs, driving on a inventory market rally within the second half of the 12 months fueled by stimulus cash and hopes of a COVID-19 vaccine.

DoorDash mentioned its income for the third quarter ended September reached $879 million, up from $239 million in an identical interval final 12 months. The corporate posted a lack of $43 million after reporting its first quarterly revenue of $23 million three months earlier.

Based in 2013, DoorDash is backed by the Imaginative and prescient Fund managed by Japanese tech large SoftBank Group Corp, enterprise capital agency Sequoia Capital and sovereign wealth fund Authorities of Singapore Funding Corp.

The corporate’s shares are set to start out buying and selling on the New York Inventory Change on Wednesday beneath the ticker “DASH.”

Goldman Sachs (NYSE:) and J.P. Morgan are the lead underwriters for DoorDash’s providing.

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