GrubHub IPO values company at about $2.04 bln: Reuters

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GrubHub Inc’s (GRUB.N) initial public offering was priced at $26 per share, slightly above an already raised price range, valuing the biggest U.S. online food delivery services company at about $2.04 billion.

The IPO raised about $192.5 million.

The price range was raised to $23-$25 per share from $20-$22 on Tuesday.

Chicago-based GrubHub, backed by private equity firms such as Warburg Pincus, Goldman Sachs funds and Thomas H. Lee Partners, sold 4 million of the 7.40 million shares offered.

Citigroup and Morgan Stanley were the lead underwriters of the offering.

GrubHub, which receives a commission from restaurants on orders booked through its website and mobile applications, said revenue jumped 67 percent to $137.1 million in 2013.

Net income attributable to common stockholders fell to $5.67 million from $7.51 million.

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

GrubHub’s shares will start trading on the New York Stock Exchange on Friday under the symbol “GRUB”.

(Reporting by Avik Das in Bangalore; Editing by Sriraj Kalluvila)

Photo courtesy of Shutterstock.

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