DoorDash (DASH) - Get Report kicked off trading at $182 a share on Wednesday and ended the day even higher, surging above its already raised offering price of $102 a share amid strong investor appetite for big-name public offerings in what has shaped up to be the hottest year for IPOs since the late 1990s.
Shares ended the regular session at $189.51. They fell to $182 in after-hours trading.
At $182 a share, that gives DoorDash a market capitalization of $57.8 billion. Even before it began trading, DoorDash had a fully diluted value of more than $38 billion at its offering price, already well above the $28 billion valuation back in late November when it filed to go public.
The San Francisco-based food-delivery company sold 33 million shares. The $102 price was higher than the marketing range of between $90 to $95 a share. Before officially changing hands, the stock briefly indicated at $200 a share.
While many companies have benefited from the Covid-19 pandemic and ensuing market rally, few have seen their bottom lines swell like DoorDash. According to its most recent filing, revenue in the third quarter surged 268% from a year earlier to $879 million, following second-quarter growth of 214%.
Through September, DoorDash’s order volume climbed to $16.5 billion from $5.5 billion a year earlier. DoorDash makes money by charging a commission to participating restaurants as well as a per-order user delivery fee.
The company has some 390,000 merchants on its platform, including fast-good giants McDonald’s (MCD) - Get Report, Chipotle (CMG) - Get Report and Chick-Fil-A. It also lists thousands of restaurants in local markets across the U.S. and Canada.
DoorDash’s IPO comes amid a slew of late-year IPOs cashing in on surging markets and demand for high-growth potential names on Wall Street.
The IPO for Airbnb, the home rental platform, is expected to price Wednesday evening. Airbnb earlier this week said it aims to raise around $3 billion from its planned listing on the Nasdaq, an offering that could value Airbnb at about $42 billion.
It also follows other big-tech IPOs, including data warehouse company Snowflake (SNOW) - Get Report, data analytics firm Palantir Technologies (PLTR) - Get Report, virtual building video game giant Roblox and ContextLogic, the parent of online retailer Wish.