Third-party delivery company DoorDash plans to raise $2.54 billion in an initial public offering, with shares priced at $80 each, according to newly filed Securities and Exchange Commission documents.
The company said it will use the funds primarily for “general corporate purposes” such as working capital and operating expenses. Some of the proceeds could also go toward acquiring or investing in other businesses, though it has no such agreements right now, DoorDash said.
Portions could also be used to fund its $200 million pledge to help restaurants and drivers, the company said.
The San Francisco-based company is the U.S. food delivery market leader, accounting for half of all sales. It will trade on the NYSE with the symbol DASH, joining Uber Eats, Grubhub and Waitr on the public market.
Founded in 2013, DoorDash has achieved massive growth in the past several years, increasing its market share to 50% in October from 17% in January 2018. The pandemic has provided a major revenue boost and helped DoorDash turn a profit in the second quarter, but the company has posted a net loss every year since 2013. It has spent liberally on customer acquisition and plans to continue to do so amid intense competition in the delivery space.
DoorDash now begins a so-called “roadshow” to pitch its offering to large prospective investors. It has set an initial price range of $75 to $85 per share, and will offer 33 million shares of Class A common stock. Goldman Sachs & Co. LLC and J.P. Morgan are serving as lead book-running managers for the IPO, DoorDash said in a release.