DoorDash makes trading debut 78% above IPO price

  • DoorDash commenced public trading on Wednesday, opening at $US182, which was 78% above its initial public offering price.
  • The food-delivery company raised roughly $US3.4 billion with its initial public offering after pricing shares at $US102 each on Tuesday.
  • The IPO kicks off a slew of debuts slated for December, including offerings from Airbnb and Wish-parent ContextLogic.
  • DoorDash trades on the New York Stock Exchange under the ticker “DASH.”
  • Watch DoorDash trade live here.

DoorDash commenced public trading on Wednesday, opening at $US182, which was 78% above its initial public offering price. The stock is listed on the New York Stock Exchange.

The food-delivery company raised roughly $US3.4 billion in its initial public offering, selling shares at $US102 each. The final pricing exceeded its previously expected range of $US90 to $US95 per share, and gave DoorDash a valuation of roughly $US34.2 billion. That sum handily surpasses the $US15 billion valuation it achieved in the private market earlier this year.

DoorDash’s IPO marks one of the year’s biggest offerings and caps a historic year for public debuts. US listings already raised a record $US156 billion in 2020, according to Bloomberg data. Airbnb and Wish-parent ContextLogic are still poised to enter the market this month, with the former set to begin trading on Thursday.

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Overwhelming investor demand placed shares on track to open as high as $US195 before trading began. Its ultimate opening level of $US182 is more than double the $US75 to $US85 range DoorDash expected to price shares as recently as Thursday.

DoorDash’s debut establishes it as the highest-valued food-delivery company. The firm trades under the ticker “DASH.”

While the coronavirus slashed sales across the US economy, stay-at-home orders led DoorDash to thrive through the pandemic. Third-quarter revenue leaped 268% from the year-ago period as a larger portion of Americans turned to food delivery services.

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The distribution of a coronavirus vaccine might cut down on deliveries, but soaring COVID-19 cases and reinstated lockdown measures stand to keep the company’s hot streak alive into 2021.

DoorDash climbed as much as 92%, to $US195.50, on Wednesday.Goldman Sachs and JPMorgan served as the IPO’s lead underwriters.

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