Investor Alert

Nov. 30, 2020, 8:13 a.m. EST

DoorDash sets terms for IPO, which could value company at up to $27 billion

DoorDash Inc. disclosed Monday that it has set terms of its initial public offering, in which the app-based food-delivery platform is looking to raise up to $2.81 billion. The company is offering 33 million Class A shares in the IPO, which is expected to price between $75 and $85 a share. With 286.3 million Class A shares and 31.3 million Class B shares outstanding after the IPO, the IPO pricing would value San Francisco-based DoorDash at up to $27 billion. In comparison, rival food-delivery platform Grubhub Inc. (NYS:GRUB) had a market capitalization of about $6.5 billion as of Friday's close. DoorDash expects its stock to trade on the NYSE under the ticker symbol "DASH." Goldman Sachs and J.P. Morgan are the lead underwriters. The company is looking to go public at a time of strong investor demand for IPOs, as the Renaissance IPO ETF (PSE:IPO) has run up 31.2% over the past three months, while the S&P 500 (S&P:SPX) has gained 3.7%.

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