DoorDash aims for up to US$27b valuation in IPO

[SAN FRANCISCO] Food delivery startup DoorDash is aiming to raise up to US$2.8 billion at a valuation of US$27 billion in its initial public offering, setting the stage for one of the most high-profile stock market debuts of the year.

SoftBank-backed DoorDash plans to sell 33 million shares priced between US$75 and US$85 apiece, it said in a regulatory filing on Monday, as it looks to take advantage of a boom in US capital markets.

DoorDash and rivals Uber Eats, GrubHub and Postmatesc have benefited from a surge in demand for food delivery services due to widespread Covid-19 lockdowns.

The company reported a surge in revenue growth in 2020 and a quarterly profit for the first time, it said in an IPO filing earlier this month.

DoorDash's listing adds to a blockbuster year for IPOs, as companies capitalize on a stock market rally in the second half of the year, fuelled by stimulus money as well as increasing hopes of an effective vaccine to end the pandemic.

Silicon Valley-based Doordash, which plans to list on the New York Stock Exchange under the ticker 'DASH', had confidentially filed for an IPO in February.

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REUTERS