Food delivery startup DoorDash eyes $27b valuation in much-awaited IPO

Visual from DoorDash website

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

The SoftBank-backed firm plans to sell 33 million shares priced between $75 and $85 apiece, it said in a regulatory filing on Monday, as it takes advantage of a boom in stock markets powered largely by technology-focused companies.

DoorDash’s IPO and a flotation by home rental startup Airbnb are set to light up December, typically a slow period for IPOs, and mark a strong finish to a blockbuster year for new listings.

Companies have raised over $140 billion so far in 2020, making it the biggest year for stock market listings in the past few decades, according to data from Dealogic, which has tracked IPO data since 1995.

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

The company posted a surge in revenue growth in 2020 and its first quarterly profit, it disclosed in its IPO filing earlier this month.

A number of big Silicon Valley names including Palantir Technologies, Snowflake Inc and Unity Software have gone public this year, riding on a stock market rally in the second half of the year fueled by stimulus money and hopes of an effective vaccine to end the pandemic.

San Francisco-based Doordash plans to float its shares on the New York Stock Exchange under the ticker ‘DASH’ on Dec. 9. It had confidentially filed for an IPO in February.

DoorDash, the largest U.S. third-party delivery company for restaurants, has raised about $3 billion to date, and was valued at roughly $16 billion after its most recent funding round in June, according to data platform PitchBook.

Goldman Sachs and J.P. Morgan are the lead underwriters for the offering.

Reuters

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.