DoorDash Inc (NYSE: DASH) is a super-hot IPO.
The original price was put between $75-85 per share. On Friday, December 4, that price was raised to a range of $90-95.
Today is the IPO date. The price was finally set at $102, well above the range indicated.
DoorDash is the food delivery industry leader in the U.S. When the pandemic hit in March, the company moved quickly and swiftly to build its customer base.
Investors are clearly excited about the company. It controls approximately 50% of the market share, boasting 390,000 merchants and over 5 million subscribers.
Trading opened up at 12:42 p.m. Eastern, at a price of $182, a 78% premium over the list price — hitting a peak of $195.50 within the first five minutes of trading.
DoorDash has warned investors the growth brought on by the pandemic isn’t likely to last.
The $102 price per share allowed DoorDash to raise $3.4 billion in cash. Looking forward, DoorDash wants to make last-mile delivery for a wide range of businesses, not just food.
In the age of Amazon, convenience is king. In the age of pandemic, safety is a top priority. DoorDash delivers on both.
At writing the stock price was near $180, putting the market cap at about $70 billion.
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