GIC-backed DoorDash doubles valuation to raise US$3.4b in US listing: source

[NEW YORK] DoorDash on Tuesday sold shares in its initial public offering (IPO) at US$102 apiece, above its upwardly revised target range, to raise US$3.36 billion in what will be one of the biggest US stock market debuts of 2020, according to a person familiar with the matter.

The IPO gives the US food delivery startup a fully diluted valuation of around US$38 billion, more than double its US$16 billion valuation during a private fundraising round in June.

DoorDash did not immediately respond to a request for comment. The source requested anonymity as the details were not yet public.

DoorDash, the largest US third-party delivery company for restaurants, had aimed to sell 33 million shares at US$90 to US$95 apiece. It had earlier targeted a price range of between US$75 and US$85.

The share offering comes as DoorDash and rivals Uber Eats, Grubhub and Postmates have benefited from a surge in demand for food delivery services due to widespread Covid-19 restrictions.

DoorDash joins other big Silicon Valley companies, including Palantir Technologies and Snowflake, that have had blockbuster IPOs, riding on a stock market rally in the second half of the year fueled by stimulus money and hopes of a Covid-19 vaccine.

DoorDash said its revenue for the third quarter ended September reached US$879 million, up from US$239 million in a similar period last year. The company posted a loss of US$43 million after reporting its first quarterly profit of US$23 million three months earlier.

Founded in 2013, DoorDash is backed by the Vision Fund managed by Japanese tech giant SoftBank Group, venture capital firm Sequoia Capital and sovereign wealth fund Government of Singapore Investment Corp.

The company's shares are set to start trading on the New York Stock Exchange on Wednesday under the ticker "DASH". Goldman Sachs and JPMorgan are the lead underwriters for DoorDash's offering.

REUTERS