Toast valued at $20 billion after pricing U.S. IPO above target

NEW YORK (Reuters) -Restaurant software provider Toast Inc priced its U.S. initial public offering (IPO) well above the target range to raise $869.6 million, valuing the company at $19.98 billion.

Toast sold 21.7 million shares at $40 apiece, the company said in a statement on Wednesday. It had earlier increased its price range to between $34 and $36 per share from $30 to $33.

Founded in 2011, Toast’s software helps restaurants manage their online ordering, operate an on-demand delivery network and integrate payments.

Food delivery businesses such as DoorDash Inc, Uber Eats and Grubhub have seen demand surge during the pandemic as stuck-at-home consumers turned to these services to get food delivered to their doorsteps.

Toast said in an earlier filing that it was serving more than 48,000 restaurant locations as of the end of June this year.

The company will list its shares on the New York Stock Exchange under the symbol “TOST”.

Goldman Sachs, Morgan Stanley and J.P. Morgan are the lead underwriters for the offering.

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