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DoorDash boosts IPO price range amid strong appetite for tech stocks

Expectations are high for the public offering.
(rafapress)
(rafapress)
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“Food delivery startup DoorDash Inc now expects to raise up to $3.14 billion in its U.S. initial public offering after boosting its price range on frenzied investor interest in technology stocks that have been boosted by the Covid-19 pandemic,” CNBC writes.

DoorDash’s public offering continues a record year featuring several “blockbuster IPOs” such as Palantir and Snowflake.

  • The stock market has rallied in the second half of the year, built on hopes for a new stimulus package and effective Covid-19 vaccine.
  • Airbnb will also debut in December.

IPO Numbers To Consider:

  • DoorDash is the largest U.S. third-party delivery service for restaurants.
  • It’s planning to sell 33 million shares in a range of $90 to $95 each.
  • DoorDash was previously looking at a $75 to $85 price range.
  • By those numbers, DoorDash’s market capitalization could hit $30 billion.
  • It will list under the ticker $DASH.

Big Friends In High Places: The company, founded in 2013, is backed by “the Vision Fund managed by Japanese tech giant SoftBank, venture capital firm Sequoia Capital and sovereign wealth fund Government of Singapore Investment Corp.”

It’s been a big year, despite the economic fallout of Covid-19. Home delivery services have seen an explosive surge in demand due to Covid-19 restrictions.

  • The revenue growth led to DoorDash posting its first quarterly profit, while rivals UberEats, Grubhub and Postmates all reaped the benefits as well.

The Takeaway: These prices indicate a clear thing — investors are incredibly interested in DoorDash when it reaches the public markets.

Justin Oh:

Please watch my DoorDash YouTube video for my views on DoorDash ($DASH) stock!

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