US food-delivery major DoorDash to raise $2.8 billion with IPO

On-demand food delivery brand DoorDash is planning to raise around $2.8 billion in an initial public offering that’s part of an end-of-year U.S. listings rush.

The company said it will use the funds primarily for ‘general corporate purposes’ such as working capital and operating expenses. Some of the proceeds could also go toward acquiring or investing in other businesses, though it has no such agreements right now.

Also Read: McDonald's adds DoorDash as new delivery partner, ending its exclusive deal with Uber Eats

The American company said in a filing Monday that it is planning to sell 33 million shares for $75 to $85 each. At the top end of this range, the company could be valued at about $32 billion, taking into account the outstanding shares listed in its filing, as well as employee stock options and restricted stock units.

The San Francisco-based brand is the market leader in the delivery in the US, accounting for half of all sales. It will trade on the NYSE with the symbol DASH, joining Uber Eats, Grubhub and Waitr on the public market, reported Restaurant Business Online.

May Interest: Food delivery startup DoorDash is raising $500 million in funding

Founded in July, 2013 by Stanford students Tony Xu, Stanley Tang, Andy Fang and Evan Moore, Goldman Sachs & Co. LLC and J.P. Morgan are serving as lead book-running managers for its IPO.