While its IPO price was set at $ 102 per share, which allowed it to raise $ 3.4 billion, the stock closed at $ 189.51, up 86%.
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The door-to-door grocery and food delivery man DoorDash, which has benefited from an explosion in demand for its services since the start of the pandemic, scared counters on the occasion of its very first listing on Wall Street on Wednesday.
While its IPO price was set at $ 102 per share, which allowed it to raise $ 3.4 billion, the company’s stock started at $ 182 in mid-trading on the New York. Stock Exchange.
The voracious appetite of investors was confirmed until the close: the stock, listed under the ticker symbol DASH, ended at 189.51 dollars, up 86%.
At this price, and without taking into account some employee actions, the company is worth $ 60 billion on Wall Street.
The share level soared as the morning progressed, as brokers and bankers tried to gauge investor interest as accurately as possible.
The start-up has been propelled to the front of the stage by the activity restriction measures caused by COVID-19, which have often led to the closure of restaurant rooms and encouraged individuals to have their meals delivered or their races.
For the occasion, the New York Stock Exchange was adorned with the orange color of the group’s logo.
DoorDash officials virtually participated in the opening of the meeting: the faces of sixteen of them, visibly teleworking, appeared on a screen above the bell traditionally struck to mark the start of the exchanges.
Golden age for delivery people
DoorDash’s hair-raising entry to Wall Street bodes well for other tech nuggets that are set to hit U.S. markets by the end of the year, such as Airbnb on Thursday, the online shopping site. Wish line or the Roblox gaming platform.
“It’s a golden age for food delivery people and DoorDash is the leader, which is attracting increased attention from Wall Street,” said Dan Ives, analyst for Wedbush.
Investor interest is all the more heightened by the fact that the pandemic continues for the moment to spread at high speed in the United States, he adds in a message to AFP.
The market for food and shopping deliveries is worth up to $ 100 billion, according to him.
Even if the arrival of a vaccine could slow down the growth of DoorDash a bit, many individuals have now become familiar with its services.
Behind Facebook and Uber
The IPO price was already well above the level initially envisioned, which was $ 75 to $ 85 per share just a week ago.
Its valuation soared in a few months: it stood at $ 16 billion during its last round of table in June.
DoorDash claims 1 million deliverers, called “Dashers”, and more than 18 million customers, which gives it the number 1 position in the sector in the United States: it had a market share of 49% in September, against 22 % to Uber and 20% to GrubHub, according to the firm Second Measure.
Its turnover has more than tripled in the first nine months of the year, compared to the same period in 2019.
Like many young companies going public, it remains in deficit: it lost 149 million dollars over the period.
In terms of governance, DoorDash has replicated the arrangements of other tech startups by offering three different types of shares. This practice allows the boss, Tony Xu, also one of the co-founders, to retain control with 69% of the voting rights.
According to specialist site Pitchbook, the transaction brings DoorDash the third highest valuation for a company backed by venture capital firms going public in New York in the past decade. The group is second only to Facebook and Uber.
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