Online food ordering service GrubHub's coming IPO now has a prospective price tag. The company announced today it expects to sell seven million shares at between $20 and $22 per share, giving it a hopeful total valuation of about $1.72 billion. With the IPO, GrubHub hopes to raise $177.9 million of capital, an increase from its initial plan to raise about $100 million.
That starting price is only GrubHub's expectation, as the stock could perform above or below that number when it does go public. In its initial IPO filing in late February, Grubhub did not reveal its expected valuation.
The company has seen huge growth in the past year, particularly during the wintery cold months when people would rather order-in than venture into the cold. Grubhub essentially took control of the online delivery-ordering business when it merged with its biggest rival, Seamless, in 2012. As we noted last month, that merger gave the combined company a big bump in its active users, from just below 1 million in 2012 all the way up to 3.4 million last year. The new funds should help them expand their empire to even more cities.
Grubhub will trade on the stock market under the symbol "GRUB."