- Food delivery Company DoorDash was listed on NYSE on 09 December 2020, raising ~US$3.4 billion in the process.
- The shares surged by ~86% at the end of the session, settling at US$189.51. The shares were priced at US$102 initially.
- DoorDash aims to use these proceeds to grow its network of merchants, improve customer adoption and build a strong and trustworthy logistics network.
On 09 December 2020, DoorDash made is NYSE debut on New York Stock Exchange, and by the end of the trading session, the shares surged by 85.89%, settling at US$189.51.
DoorDash is a technology company that links people with the best in their cities. It empowers local businesses and in turn, create new avenues for people to earn, work and live. The Company started by providing door-to-door delivery. It provides goods from the favourite restaurant to its customers. DoorDash also gives flexibility and financial stability to its customers.
Through the IPO, the Company raised ~US$3.4 billion. Each share under the IPO was priced at US$102, well above the price range of US$90 to US$95. At the end of the first day, the market cap of the Company stood at US$60 billion. The Company began trading under the ticker DASH.
The proceeds raised through the IPO would be used for general corporate purposes, including working capital, operating expenses, and capital expenditures. A portion of these proceeds would be used to acquire or invest in businesses, products, services, or technologies. However, in the present times, the Company claims that it does not have any agreements or commitments for any material acquisitions or investments.
Further, these funds would be used to finance a US$200 million pledge which forms a part of its Main Street Strong program, to aid merchants, Dashers, and local communities. The raised funds will also support DoorDash to satisfy a portion of its expected tax withholding plus remittance obligations concerning the vesting and settlement of RSUs that DoorDash granted.
DASH aims to grow its network of merchants by providing innovative services to its merchants that allow them to grow.
DoorDash intends to improve customer adoption and make DoorDash become a part of the daily activity. For this, it plans to increase its customers not only in the US but overseas as well. It will also make every effort to increase the frequency with which customers use DoorDash by expanding the breadth of restaurant selection, the availability of meals throughout the day.
It also seeks to build a trustworthy, superior, and operationally effective logistics network.
A Glance at DoorDash’s Management: