DoorDash commenced public trading on Wednesday, opening at $182, which was 78% above its initial-public-offering (IPO) price. The stock is listed on the New York Stock Exchange.
The food-delivery company raised roughly $3.4 billion in its IPO, selling shares at $102 each.
The final pricing exceeded its previously expected range of $90 to $95 per share and gave DoorDash a valuation of roughly $34.2 billion.
That sum handily surpassed the $15 billion valuation it achieved in the private market earlier this year according to Business Insider.
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DoorDash’s IPO is one of the year’s biggest offerings and caps a historic year for public debuts.
Overwhelming investor demand had placed shares on track to open as high as $195. Its ultimate opening level of $182 was more than double the range of $75 to $85 that DoorDash expected to price shares at as recently as Thursday.
Earlier in the week, the CEO and founder of New Constructs said that DoorDash’s initial public offering (IPO) “holds no value,” and the company may never be profitable.
Trainer noted that DoorDash publicly filed for its IPO on November 13, a few days after Pfizer announced its vaccine was found to be over 90% effective at preventing COVID-19.
DoorDash’s revenue rose 268% YoY in the third quarter of 2020, but Trainer cautioned investors against expecting further growth, especially if a swiftly deployed coronavirus vaccine sends people back into restaurants.
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.
By: Ifunanya Ikueze