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On Tuesday, America's DoorDash went public, raising $3.37 billion on their IPO.
Shortly after their debut, the company's shares soared over 92%, reaching a high of $195.50, valuing it close to $70 billion.
With DoorDash's shares soaring, it's co-founder and CEO Tony Xu's stake is now worth $2.7 billion.
One of the company's largest investors was SoftBank, who emerged as one of the biggest winners from the company's IPO.
The Japanese telecommunications giant owns 20% of DoorDash post IPO, a stake acquired just 2 years ago for $680 million via the Vision Fund.
At DoorDash's current share price, SoftBank's gains are more than 16x the initial investment.
“DoorDash is an example of what a successful IPO can look like and people are buying SoftBank on the expectation that profit will continue to grow. Investors are once again recognizing Son’s skill as an investor”, said Makoto Kikuchi, chief investment officer at Myojo Asset Management Co..
As of October 2020, DoorDash had over 50% share of the food delivery market, surpassing UberEats, GrubHub, and Postmates.
DoorDash's revenue for Q3 (ending in September) reached US$879 million, up by more than 3X since a similar period last year.
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