Written by Corrie Driebusch and Preetika Rana
Food-delivery provider DoorDash Inc. has filed for an initial public offering, firing the starting gun on what could be one of the year’s marquee listings.
The money-losing San Francisco startup said Thursday that it has confidentially filed paperwork for an IPO with the Securities and Exchange Commission. SEC rules allow companies to keep their listing documents private for a period of time leading up to a new offering.
The move sets up DoorDash to go public as soon as late spring, in what would be one of the most-watched IPOs of the year. It would provide a signal of the health of the new-issue market after a year when a number of closely watched debuts stumbled.
Though plunging stocks right now make markets inhospitable for IPOs—with major stock indexes in the U.S. down roughly 10% from recent highs on fears of the economic impact from the coronavirus epidemic—DoorDash and its underwriters at Goldman Sachs Group Inc. hope that the volatility will have passed by the time they are ready to push the button on the listing.
In addition to market conditions, however, they will have to contend with fickle IPO investors, who have grown warier of money-losing companies.
Seven-year-old DoorDash has expanded quickly and its private valuation ballooned. A funding round last year valued DoorDash at nearly $12.6 billion, up from just $1.4 billion in 2018.
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