GrubHub Opens at $40, Promptly Drops
NEW YORK (TheStreet) -- Chicago-based GrubHub Seamless
Shares were recently trading at $35.82, up 37.8% from the offering price.
GrubHub, which merged with online restaurant deliver service Seamless in August 2013, priced its initial public offering at $26 per share, up from an expected $23 per share. In the initial public offering, GrubHub sold 7.4 million shares, as demand for shares in the offering proved to be greater than expected.
GrubHub generated $1371 million in revenue, up 67% year-over-year, though that included combined results of Seamless and GrubHub. For the fisal 2013 year, GruHub generated $59.2 million in revenue, while Seamless accounted for $110.9 million in sales, according to the company's S-1 filing.
The company noted it has more than 28,000 restaurants in its directory, with over 135,000 daily food orders.
Citigroup and Morgan Stanley were the joint bookrunners for the IPO.
--Written by Chris Ciaccia in New York