GrubHub Inc. announces IPO price, to start trading on NYSE on Friday
GrubHub Inc. announced pricing its initial public offering valued USD26 per share piece. The new price was increased from the previously announced price range. This would give the company a value of around USD2.04 billion. GrubHub is the largest online food delivery firm in the US, reported Reuters.
The company’s public debut was expected to raise USD192.5 million. The price for the IPO went up from USD20-USD22 to USD23-USD25 on Tuesday. GrubHub’s debut was backed up by PE firms including Thomas H. Lee Partners, Warburg Pincus and Goldman Sachs. The IPO offered 7.40 million shares and have already sold 4 million.
The deal was underwritten by Morgan Stanley and Citigroup.
GrubHub operates through getting commission from food stores every time an order is booked through its site and mobile apps. The company said that its revenue increased from USD137.1 million last year by 67 percent, reported Reuters.
GrubHub was listed on the New York Stock Exchange under the ticker symbol GRUB and would start trading on Friday.