By Noor Zainab Hussain, Reuters
Food delivery startup DoorDash Inc said on Friday it now expects to raise up to $3.14 billion in its U.S. initial public offering (IPO) after lifting its pricing range, signaling a frenzied interest from investors.
DoorDash, the biggest U.S. third-party delivery company for restaurants, plans to sell 33 million shares at between $90 and $95 apiece, it said in a regulatory filing. It had earlier targeted a price range of between $75 and $85 per share.
Founded in 2013, DoorDash is backed by the Vision Fund managed by Japanese tech giant SoftBank Group Corp, venture capital firm Sequoia Capital and the Government of Singapore Investment Corp (GIC), Singapore’s sovereign wealth fund.
Its market capitalization at the top end of the range would be around $30 billion.
San Francisco-based DoorDash plans to list its shares on the New York Stock Exchange under the ticker “DASH” this month. It had confidentially filed for an IPO in February.
DoorDash and rivals Uber Eats, Grubhub Inc and Postmates Inc have benefited from a surge in demand for food delivery services due to widespread COVID-19 restrictions.
Goldman Sachs and J.P. Morgan are the lead underwriters for the offering.