DoorDash raises IPO price ahead of planned float

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DoorDash Inc has raised the price of the initial public offering (IPO) to between US$90-US$95 per share from the previous range of US$75-US$85 announced at the start of the week.

The company, America’s largest food delivery firm, said it is offering 33mln shares for the IPO, which is expected to raise around US$3.14bn and provide the company with a market value of just over US$30bn.

The expected IPO market cap is massively ahead of a previous valuation in June, which saw private investors estimate DoorDash’s value at around US$16bn.

The company filed its prospectus for the IPO in November as the onset of the coronavirus (COVID-19) pandemic led to a boom in sales over the year, with revenues for the first nine months of the firm’s current financial year more than tripling to US$1.9bn from US$587mln in the prior year.

DoorDash seems to be looking to ride a wave of investor optimism following the announcement of several vaccines for COVID-19 to cash in from its float, with online room rental platform Airbnb also pushing ahead with IPO plans.

Airbnb has priced its own IPO at between US$44-US$50 per share and is aiming to raise around US$2.5bn with a listing before Christmas. At the top of this range, the IPO would value the company at US$29.8bn.

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