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Summary
- Stocks of food delivery app DoorDash Inc debuted on the New York Stock Exchange on Wednesday, December 9.
- Airbnb shares are slated to hit the Nasdaq on Thursday, December 10.
- DoorDash raised about US$ 3.37 billion in its initial public offering (IPO) on Tuesday.
The year may be coming to an end but the IPO season is still hot and running. US-based unicorns DoorDash Inc and Airbnb are two of the most-anticipated IPOs of the year. The on-demand food delivery business hit Wall Street on Wednesday, and the home rental company is going public the following day.
DoorDash Inc (NYSE: DASH, DASH:US)
Stocks of food delivery app DoorDash Inc debuted on the New York Stock Exchange on Wednesday, December 9, having raised about US$ 3.37 billion in its initial public offering (IPO).
The San Francisco-based company sold a total of 33 million stocks on Tuesday, December 8. DoorDash had priced their shares for US$ 90 to US$ 95 apiece, but the scrips were sold for US$ 102. DoorDash’s fully diluted value comes to about US$ 38 billion.
DoorDash’s was the third largest IPO in the US this year. The stocks are now available under the ticker of ‘DASH’.
DoorDash listed its IPO with the US Securities and Exchange Commission on November 13, with a preliminary listing offering of US$ 100 million.
The pandemic-induced lockdown saw DoorDash’s revenue climb to US$ 1.9 billion in the nine months ending 30 September 2020, up from that of US$ 587 million in the same period last year.
Airbnb Inc
Next in line to go public is online rental place provider Airbnb, which is seeking to raise proceeds of about US $3.09 billion in its IPO on Wednesday.
Airbnb shares are slated to hit Nasdaq on Thursday, December 10.
The US-based home rental business recently increased its IPO range to US$ 56 to US$ 60 per share, up from that of US$ 44 to US$ 50 a pop.
Going by the upper limit of the US$ 56 to US$ 60 range, Airbnb Inc is likely to raise as much as US$ 3.1 billion in proceeds at its IPO, which could make its fully diluted valuation about US$ 42 billion. This would be significantly up from the US$ 35 billion that the company would make with the IPO price range of US$ 44 to US$ 50 a pop.
The Airbnb IPO is also predicted to be one of the biggest ones in the US this year.
The tech firm would be selling about 52 million stocks at its IPO, which the company said would help make up for some coronavirus pandemic-triggered losses this year. The company slashed its workforce by about 25 per cent due so far this year. It also raised emergency funding of approximately US$ 2 billion from its investors.
IPO Season
The IPO season does not end with Doordash and AirBnB. Companies such as online video game manufacturer Roblox Corp, financial firm Affirm Holdings Inc and ecommerce vendor Wish’s parent company ContextLogic Inc are in the pipeline. In 2021, we may see Ant Group, Robinhood, Bumble, Stripe and many others hit the stock markets.
