With about $1.9 billion in revenue, DoorDash has grown to be one of the biggest players in the U.S. food delivery market.
DoorDash, Inc. is moving closer to executing an initial public stock offering with plans to sell an estimated 33 million shares of Class A common stock for between $75 and $85. If the IPO is completed at the midpoint of that range, it would push the company’s valuation above $25 billion, according to The Wall Street Journal.
San Francisco-based DoorDash announced a few weeks ago that it filed a registration statement on Form S-1 with the U.S. Securities and Exchange Commission relating to the IPO.
The shares are likely to trade on the New York Stock Exchange under the symbol "DASH." Goldman Sachs & Co. LLC and J.P. Morgan are acting as lead book-running managers for the proposed offering. Barclays, Deutsche Bank Securities, RBC Capital Markets and UBS Investment Bank are operating as book running managers, and Mizuho Securities, JMP Securities, Needham & Co., Oppenheimer & Co. Inc., Piper Sandler and William Blair are acting as co-managers.
The offering will be made only by means of a prospectus. A registration statement relating to these securities has been filed with the Securities and Exchange Commission but hasn’t yet become effective.
In comparison, publicly held Albertsons Cos.’ IPO received a lukewarm response from investors during its first day of trading back in June. Shares priced at $16 closed down 3% to end the first day of trading at $15.52 on June 26. The grocer's IPO gave it a valuation of roughly $9 billion.
Founded in 2013, DoorDash now operates in more than 4,000 cities. Food delivery has become essential to everyday life during the pandemic. According to DoorDash’s economic impact report, released in October, 90% of its drivers—or Dashers—believe DoorDash provides an important service during COVID-19. With about $1.9 billion in revenue, it has grown to be one of the biggest players in the U.S. food delivery market.
Additionally, in August, DoorDash showcased its knack for innovating in retail with the launch of DashMart, an online convenience store. Consumers shopping via the DoorDash app can now buy such items as food, snacks and household essentials under the DashMart banner.