by Wolf Richter
Startup investors making hay while the sun shines. Public in blindly exuberant feeding frenzy. But the IPO ETF is down 3.0% today, on too much hot air?
Food-delivery outfit DoorDash sold 33 million shares to institutional investors yesterday for $102 each, raising $3.37 billion, for an initial market value of $38 billion. Shares [DASH] started trading mid-day today, went on to around $190, for an initial pop of 86%, giving it briefly a ridiculous market value of $70 billion, before backing off. In 2018, the company had a “valuation” of $1.4 billion.
But this was only the third-largest public listing this year, behind Bill Ackman’s $4 billion SPAC (special-purpose acquisition company), a blank-check outfit that will attempt to buy something later, and Snowflake’s $3.86 billion IPO.