NEW YORK • DoorDash, the biggest American food delivery company, is seeking to raise as much as US$2.8 billion (S$3.8 billion) in an initial public offering (IPO) that is part of an end-of-year US listings rush.
The San Francisco-based company said in a filing on Monday that it plans to sell 33 million shares for US$75 to US$85 each.
At the top end of this range, the company could be valued at about US$32 billion. This figure is an increase from that in June when private investors valued it at about US$16 billion.
The IPO price range could still change depending on demand for its stock during its roadshow with investors over the next week.
After the listing, co-founder and chief executive Tony Xu will hold almost 42 per cent of DoorDash's Class B super-voting shares, which have 20 votes each. He also has voting control over the rest of the 20-vote shares, which are split between his co-founders Stanley Tang and Andy Fang.
They will control about 79 per cent of the voting power, according to the filing.
SoftBank Group's Vision Fund will be the largest outside investor, with 25 per cent of the Class A shares.
Venture capital firm Sequoia will own more than 20 per cent and Singapore's GIC will own 10.5 per cent, according to the filings.
That will add up to less than 16 per cent of the voting power because of the Class B shares held by the founders.
DoorDash is currently planning to hold the IPO next Tuesday, with its trading debut on the New York Stock Exchange the following day, said a person familiar with the matter who asked not to be identified because it was not public.
A representative for DoorDash declined to comment on that timing.
DoorDash is part of a cadre of consumer-oriented, Web-based companies led by home-rental platform Airbnb that have lined up IPOs for this month.
They include video-game company Roblox, instalment loans provider Affirm Holdings and ContextLogic, parent of online discount retailer Wish.
For the first nine months of the year, DoorDash had US$1.9 billion in sales, more than triple the US$587 million during the same period last year. Its net loss narrowed to US$149 million, compared with US$533 million for the period last year.
DoorDash was briefly profitable in the second quarter of this year - at the height of the stay-at-home orders in major US cities - posting US$23 million in profit.
Its offering is being led by Goldman Sachs Group and JPMorgan Chase, with Barclays, Deutsche Bank, RBC Capital Markets and UBS Group.
BLOOMBERG
