TORONTO, ON / ACCESSWIRE / December 9, 2020 / Finance executives at Toronto-based Hamilton Chukyo Brokerage have today commented on DoorDash Inc. after it raised $3.37 billion in an initial public offering (IPO) above its marketed range, marking a remarkable rise for the U.S. meal delivery firm whose business has successfully navigated the coronavirus pandemic.
"On Tuesday, DoorDash sold 33 million shares for $102 each after marketing them for $90 to $95 per share. DoorDash now has a fully diluted company valuation of around $38 billion, including employee stock options and restricted stock units," commented Michael Williams, Head of Private Wealth Management at Hamilton Chukyo Brokerage.
The San Francisco-based food delivery startup IPO is this year's third-largest U.S. listing, topped only by the $4 billion blank-check company backed by billionaire Bill Ackman and cloud-based software maker Snowflake Inc.'s $3.86 billion offering, which included so-called greenshoe shares.
DoorDash is one of several consumer-facing, online businesses that are ready to go public in December, including vacation-rental platform Airbnb Inc., which aims to raise around $3.09 billion in its Wednesday IPO. Others include video-game firm Roblox Corp., fintech company Affirm Holdings Inc. and ContextLogic Inc., the parent of mobile e-commerce app Wish Inc.
DoorDash has embraced the pandemic-fueled surge in demand for meals delivered to your door, as well as enthusiasm from investors over fresh stock listings as it pushes forward with its IPO. Revenue more than tripled in the first nine months of the year and its net loss narrowed from a year earlier on an influx of new customers, according to data gathered by Hamilton Chukyo Brokerage.
"Along with DoorDash, companies have now raised more than $160 billion in IPOs on U.S. exchanges this year, an all-time high," commented Anthony Roberts, Head of Institutional Trading at Hamilton Chukyo Brokerage. "We are expecting several more before the end of the year as companies that put off IPO's during the earlier months of the Covid-19 pandemic recapture the confidence to offer their shares publicly," he added.
DoorDash's share offering is being managed by Goldman Sachs Group Inc. and JPMorgan Chase & Co., with Barclays Plc, Deutsche Bank AG, RBC Capital Markets and UBS Group AG also involved in the deal. DoorDash's shares are set to start trading Wednesday on the New York Stock Exchange under the ticker DASH.
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Hamilton Chukyo Brokerage provides financial advice and asset management services to private, institutional and corporate clients worldwide.
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SOURCE: Hamilton Chukyo Brokerage
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