GrubHub targeting $2bn New York Stock Exchange valuation

 
Oliver Smith
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GRUBHUB, the US food delivery service similar to Britain’s Just Eat, has raised its expected share price range up to between $23 and $25 ahead of its listing on Friday.

The price range will raise GrubHub about $176m from its initial public offering (IPO), with a top end valuation of around $1.9bn (£1.14bn).

GrubHub, backed by Spectrum Equity, Benchmark Capital and Warburg Pincus, handles orders for restaurants online and via the phone, and said it would sell 4m shares in the offering with an additional 3m offered by stockholders.

GrubHub had about 28,800 restaurants and 3.4m active users as of 31 December and processed an average of 135,000 orders daily.

Just Eat indicated last week that it will chase a valuation of between £1.2bn and £1.47bn when it launches its IPO, with a price range of between 210p and 260p.

Just Eat also said it will list on London’s High Growth Segment making it the first company to take advantage of the lower free float requirements of the segment.