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DoorDash IPO raises IPO at over $100 per share

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Miguel A. Rodriguez
Miguel A. Rodriguez
09 December 2020
The company seeks a valuation of about $39 billion

The on-demand prepared food delivery service - DoorDash – will begin trading today, after rising the previously expected price-range of $90 - $95 a share.

The San Francisco-based company founded by former Stanford students Tony Xu, Stanley Tang, Andy Fang, and Evan Moore announced that its initial public offering would price at $102 per share. The change gives the company a valuation of around $39 billion.

Currently, DoorDash owns 50% of the US prepared-food delivery market with more than 18 million customers and 1 million people who deliver food, and 390,000 merchants on its platform. Uber Eats is in second place with 33%.

Since its 2013 launch, DoorDash has raised a lot of attention on itself. Over the years, it received funding from SoftBank’s Vision Fund, Kleiner Perkins, and Sequoia Capital. Now, its listing will be led by 12 underwriters, the most important being JPMorgan, Goldman Sachs, and Barclays.

DoorDash will trade on the New York Stock Exchange under the ticker symbol DASH later on today, offering 33 million shares of Class A common stock. Its IPO follows that of Snowflake and Palantir. Coming up next will be Airbnb.

Sources: marketwatch.com, foxbusiness.com

This information/research prepared by Miguel A. Rodriguez does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. The research analyst primarily responsible for the content of this research report, in part or in whole, certifies that the views about the companies and their securities expressed in this report accurately reflect his/her personal views and consequently any person acting on it does so entirely at their own risk.The research provided does not constitute the views of KW Investments Ltd nor is it an invitation to invest with KW Investments Ltd. The research analyst also certifies that no part of his/her compensation was, is, or will be, directly, or indirectly, related to specific recommendations or views expressed in this report.The research analyst in not employed by KW Investments Ltd. You are encouraged to seek advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit that conforms to your specific investment objectives, financial situation, or particular financial needs before making a commitment to invest. The laws of the Republic of Seychelles shall govern any claim relating to or arising from the contents of the information/ research provided. 

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Miguel A. Rodriguez
Miguel A. Rodriguez
Financial Writer

Miguel worked for major financial institutions such as Banco Santander, and Banco Central-Hispano. He is a published author of currency trading books.