IPO

GrubHub Stock Surges in Public Debut After Raising $192 Million

Free Book Preview Entrepreneur Kids: All About Money

Submit your email to get a sneak peek of some of the fun, educational worksheets included in our NEW book for the little entrepreneur in your life.
2 min read

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.

Related: What King Digital's 'Crushed' IPO Means for Private Mobile-Game Makers

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. 

Related: Aaron Levie, the Quintessential Silicon Valley CEO, Will Only Own 4.1 Percent of Box When It IPOs

More from Entrepreneur
Entrepreneur Select: A Fund For Entrepreneurs, By Entrepreneurs

Entrepreneurs require more than just money, which is why we aim to empower you, as well as act as a catalyst for value creation.

Discover the franchise that’s right for you by answering some quick questions about
  • Which industry you’re interested in
  • Why you want to buy a franchise
  • What your financial needs are
  • Where you’re located
  • And more
Whether you want to learn something new, be more productive, or make more money, the Entrepreneur Store has something for everyone:
  • Software
  • Gadgets
  • Online Courses
  • Travel Essentials
  • Housewares
  • Fitness & Health Devices
  • And More

Latest on Entrepreneur