(Reuters) -Shares of DoorDash Inc soared nearly 80% in their debut, valuing the food delivery startup at $68.4 billion in one of the biggest U.S. stock market launches so far in 2020 and underscoring strong investor appetite for technology companies.
Shares opened at $182 on the New York Stock Exchange, significantly above the initial public offering (IPO) price of $102 apiece. They rose as much as 92% to touch a high of $195.50 in trading right after debut.
The company raised $3.37 billion in its IPO.
DoorDash, the biggest U.S. third-party delivery company for restaurants, had priced its offering of 33 million shares above its already raised range of $90 to $95 apiece. It had earlier targeted a price range of between $75 and $85 per share.
The IPO gives DoorDash a fully diluted valuation – which includes securities such as options and restricted stock units – of $68.4 billion, far higher than the $16 billion it commanded in a June private fundraising round.
Its market capitalization at $182 would be around $57.8 billion.
The listing gains bode well for home rental startup Airbnb Inc, which is scheduled to make a highly-anticipated market debut on Thursday.
Reporting by Noor Zainab Hussain in Bengaluru; Editing by Sriraj Kalluvila and Anil D’Silva
