The biggest player in the U.S. food delivery service industry is going public next week. And it just increased the price per share.
The original target was $75-85 per share. The new target is $90-95 per share. It’s scheduled to start trading on Wednesday, December 9.
Doordash (NYSE: DASH) plans to sell 33 million shares and raise up to $3.1 billion.
Based in San Francisco and founded in 2013 it became a household name during the 2020 pandemic. Its service connects drivers and customers to deliver groceries and restaurant takeout.
Doordash’s revenue has surged due in large part to the pandemic. It even posted a quarterly profit for the first time this year.
The market has rewarded big-name IPOs in recent weeks. Palantir Technologies Inc. (NYSE: PLTR) and Snowflake Inc. (NYSE: SNOW) both skyrocketed since their debuts.
However, Doordash thrived because of the pandemic. With multiple vaccines coming down the pipeline, demand for the services could die down.
There are also multiple competitors already in the space. The stock price for Grubhub Inc. (NYSE: GRUB) has fallen 8% since the first vaccine was announced.
The higher price indicates that investor interest in the stock is high. But it’s not clear whether the market will be able to sustain the prices.
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