DoorDash, the country’s largest food delivery company, plans to price its shares at $102 each on Tuesday, according to a person with knowledge of the situation, raising roughly $3.4 billion in its initial public offering and valuing the company at around $39 billion.
DoorDash had already raised its price range amid demand from potential shareholders as it prepares to begin trading on the New York Stock Exchange on Wednesday under the symbol “DASH.” The company was last valued at $16 billion by private market investors.
The company is expected to publicly confirm the price Tuesday evening.
DoorDash’s I.P.O. is part of a parade of valuable start-ups rushing to go public before the end of the year. The ebullient stock market, driven in part by low interest rates and strong growth for tech companies, has made 2020 the busiest year for I.P.O.s since 1999.
The home rental start-up Airbnb is expected to price its shares on Wednesday and begin trading on Thursday. It also raised its proposed price range after indications of strong demand from investors.
Both DoorDash and Airbnb plan to use a new type of “hybrid auction” system to list their shares to prevent a share price “pop” on their first day of trading.
While the pandemic has ravaged parts of the economy, it has been a boon to many tech companies. People stuck at home have relied more on delivery services. DoorDash’s revenue more than tripled to $1.92 billion in the first nine months of the year compared to $587 million in the same period last year, though it said that growth was likely to slow in the future. The company is unprofitable.
Based in San Francisco, DoorDash has more than 18 million customers and one million drivers. It has recently expanded beyond food delivery into groceries, pet food and convenience store items.
The Wall Street Journal earlier reported DoorDash’s offering share price.