GrubHub Stock Surges in Public Debut After Raising $192 Million
GrubHub investors are getting a taste of success as the food-ordering company's stock surges in its debut as a public company.
GrubHub opened at $40, a 54 percent jump after having been priced at $26.
The $40 opening price far exceeded initial expectations for the company. Shareholders raised a more-than-expected $192 million in an initial public offering, selling 7.4 million shares at $26 apiece. Previously, GrubHub had announced plans to sell about 7 million shares for $23 to $25 apiece.
As of 10:17 a.m. the stock was trading at $36.88 a share, up 41.8 percent from the offering price.
GrubHub was created last year when the two largest online food delivery services, New York-based Seamless and Chicago-based GrubHub, merged. The website serves 600 cities, generating more than $100 million in revenue in 2012.
Food and tech IPOs have been hot topics so far this year. Fast-casuals such as Papa Murphy's and Zoes Kitchen have generated buzz in the restaurant world, while tech companies from Box to Candy Crush-creator King Digital have rushed to enter the public market. Clearly, investors have an appetite for food and tech in 2014, and GrubHub fits the bill nicely.