A DoorDash initial public offering (IPO) is on the way as the delivery company files documents with the U.S. Securities and Exchange Commission (SEC).
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Here’s what potential investors need to know about the DoorDash IPO.
- The company is planning to release Class A, Class B, and Class C shares of common stock.
- The shares will be the same, except in terms of voting power and conversion.
- This has each share of Class A common stock being worth 1 vote.
- Shares of Class B common stock are worth 20 votes and are convertible to Class A shares at any time.
- The Class C shares of common stock hold no voting power and are convertible to Class A shares after the complete conversion of Class B shares.
- The shares of Class B stock will belong completely to DoorDash’s founders, all of which currently hold leadership roles at the company.
- This will allow company co-founder and CEO Tony Xu to significantly influence the direction of the company when shareholder approval is needed.
- DoorDash notes that its IPO will have it listing its shares on the New York Stock Exchange under the “DASH” ticker.
- It’s worth mentioning that the company has yet to reveal a price range for shares of its stock in the IPO.
- It does mention a proposed maximum offering price of $100 million, but that’s likely just a placeholder number.
- The DoorDash SEC filing for its IPO also reveals some details about its business this year.
- That includes its nine-month revenue ending September coming in at $1.92 billion.
- The company’s net loss for the same period is also sitting at $149 million.
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article.
