DoorDash aims to add $11 billion to its valuation during public offering

This morning, DoorDash filed a new S-1 document, this time updating the market about the price it expects to command during its public offering. The food-delivery giant gave a range of $75 to $85 per share, which would revalue the company sharply higher than its final private price, set during a June Series H that valued DoorDash at $16 billion.

The company intends to sell 33 million shares, raising between $2.475 billion and $2.805 billion in the process. Notably, there are no shares set aside for its underwriting banks to buy at its IPO price.

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After the public offering, DoorDash expects to have 317,656,521 shares outstanding across various classes, giving it a valuation of between $23.8 billion and $27 billion at the two extremes of its IPO range, not counting shares that have not yet vested or are set aside for future employee compensation. CNBC calculates that the company could be worth up to $30 billion on a fully-diluted basis.

How COVID-19 accelerated DoorDash’s business

What matters more than the raw dollar amounts, however, is what we can learn from them. Let’s get into the guts of the valuation range and find out if it’s bullish or if we should anticipate DoorDash to raise its range before it goes public.

Valuations, ranges

The new DoorDash S-1/A filing, it doesn’t appear to contain new financial information, so we can keep our prior notes on the company’s health and performance in mind. Recall that we were generally impressed by DoorDash’s growth and its improving profitability.

Other on-demand food services are doing well: HungryPanda just raised $70 million, and on the back of Uber Eats’ growth — and optimism that its ride-hailing business will return with the market-readiness of strong COVID-19 vaccines — shares of Uber are at all-time highs.

So you can taste the optimism that DoorDash is riding as it looks to list. Given our take, you would be forgiven for presuming that DoorDash is targeting an aggressive price.

Is it?