DoorDash Raises $3.37B In Upsized IPO

DoorDash Inc on Tuesday priced its initial public offering at $102 per share.

What Happened: The food-delivery company issues 33 million shares in the IPO at the price, suggesting a raised amount of $3.37 billion before cutting underwriting discounts and other IPO-related expenses. The IPO is estimated to give value DoorDash around $38 billion.

The company will commence its trading debut on the New York Stock Exchange under the symbol "DASH" on Wednesday.

The IPO underwriting process will be managed by a consortium of entities led by Goldman Sachs Group Inc GS and J.P.Morgan Chase & Co JPM, with Barclays Plc BCS, Deutsche Bank Securities DB, RBC Capital Markets RY and UBS Investment Bank — a unit of UBS Group AG UBS in tow.

The current valuation records a 137% hike over the $16 billion valuation estimated for the company in June during a funding round led by Durable Capital Partners. At the time, DoorDash raised $400 million, as reported by Axios.

Why It Matters: CNBC’s Jim Cramer remarked on Monday that he can recommend buying DASH shares for a price of $100 or less. Anything above $100 might not be worth the effort, according to Cramer.

Originally, the food delivery company targeted an IPO price between $75 to $85 for an enterprise valuation of $28 billion in late November. The IPO price was later on revised to $90 to $95 in a December filing with the U.S. Securities and Exchange Commission.