Food delivery company DoorDash has sold shares in its initial public offering (IPO) at $102 each, pricing above its range.
The offering values the company at $32.4 billion, based on common stock outstanding and $38.7 billion on a fully diluted basis. The company previously said it expected to sell shares at between $90 and $95.
DoorDash is the first IPO in a late-year consumer technology wave that includes the expected debut of Airbnb later this week, followed by e-retailer Wish next week and fin-tech company Affirm and kids’ game maker Roblox later this month. The companies are taking advantage of a post-election stock rally and investor demand for high-growth technology companies.
While a wide swath of software and internet companies have gotten swept up in the COVID-19 rally, few have experienced the kind of growth seen by DoorDash. Revenue in the third quarter surged 268% from a year earlier to $879 million, following growth in the second quarter of 214%.
Through the first nine months of 2020, DoorDash’s order volume climbed to $16.5 billion from $5.5 billion in 2019. DoorDash, based in San Francisco, makes money by charging a commission to participating restaurants that can reach 30% of an order as well as a fee of a few dollars per order from consumers.
DoorDash said in its IPO prospectus that 390,000 merchants are now using its platform. That includes everything from fast food chains such as Chipotle and McDonald’s to upscale restaurants that were forced to close their doors earlier this year and switch to takeout and delivery.
