DoorDash Inc., the largest U.S. food delivery company, is seeking to secure as much as $2.8 billion in an initial public offering of 33 million shares, Bloomberg reported Tuesday.
DoorDash is gunning for a nearly $31 billion valuation when it goes public, part of an end-of-year U.S. listings rush that shows how important food delivery has become in the lives of millions of people during the global health crisis.
The listing -- double the $16 billion valuation it offered investors in its private-funding series June - could be one of the year's biggest public market debuts.
Companies have raised more than $150 billion in the U.S. so far this year, making it the most successful year ever for IPOs, data from Dealogic shows.
DoorDash is planning to initiate the initial public offering Dec. 8 and debut on the New York Stock Exchange the next day, sources with knowledge of the matter said. A company representative did not comment on the listing date.
DoorDash has experienced a solid growth in the last few months. Its ofering is expected to be priced between $75 and $85 a share, it said in a regulatory filing.
The company's valuation will include securities like options and restricted stock units. DoorDash's market capitalization at its current price of $85 a share would total $27 billion.
The public listing comes at an opportune time for the company, which has seen its sales grow three-fold this year courtesy of an increase in order volumes caused by the ongoing pandemic.
The company raked in $885 million in revenue last year. In the first three quarters this year, its sales grew over 200% to almost $2 billion. DoorDash was already growing even before the COVID crisis.
DoorDash was established in 2013, and is bankrolled by Vision Fund managed by Japan tech conglomerate SoftBank Group, the Government of Singapore Investment Corporation, and venture capital company Sequoia Capital.
