GrubHub Goes Public, Shares Gain in Healthy IPO
Shares of the restaurant pick-up and delivery platform were trading at $36.26 by early afternoon, a hike of 39.46% on GrubHub's offering price.
GrubHub priced its IPO at $26 a share after market close on Thursday, above its expected range of $23 to $25 a share. It raised $192 million in the IPO. On Friday morning, the company's shares began trading at $40 on the New York Stock Exchange.
There has been plenty of positive sentiment heading into GrubHub's IPO. The Chicago-based company brought in revenue of $137 million last year, including its recent merger with Seamless, a 67% increase on 2012. GrubHub also racked up a net profit of over $5 million. According to GrubHub's S-1 filing with the Securities and Exchange Commission, the firm has 135,500 daily active 'Grubs' and 3.42 million active diners at the end of 2013.
In its IPO prospectus, GrubHub said that it serves more than 600 cities worldwide and nearly 30,000 restaurants.
GrubHub's first-day performance marks a stark contrast to the recent IPO of King Digital Entertainment
-- Written by James Rogers in New York.