DoorDash doubles valuation to raise $3.4 bln

DoorDash is set to serve up one of this year's biggest U.S. stock market debuts.

The food delivery firm said Tuesday (December 8) it sold the shares in its initial public offering at $102 apiece - well above its target range.

That will see it raise 3.37 billion dollars.

DoorDash had previously aimed to sell 33 million shares at $90 to $95 apiece.

The IPO more than doubles the valuation of the U.S. startup to around $38 billion, after it was priced at $16 billion in June.

DoorDash is the largest third-party delivery company for restaurants in the U.S.

The company has profited from a surge in demand for food delivery in 2020, as people stay at home due to lockdowns.

In the third quarter DoorDash said its revenue hit $879 million, way up from $239 million in a similar period last year.

Though the company still posted a loss of $43 million.

DoorDash is just the latest Silicon Valley firm to enjoy a blockbuster IPO this year.

Like Palantir and Snowflake, it's riding a market rally fuelled by hopes for a COVID vaccine and stimulus money.

The company's shares start trading on New York Stock Exchange on Wednesday (December 10).