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GrubHub Opens at $40, Promptly Drops

Tickers in this article: GRUB

NEW YORK (TheStreet) -- Chicago-based GrubHub Seamless opened for trading at $40, then promptly dropped, as investors took gains in equities on both the New York Stock EXchange and NASDAQ.

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