Benzinga | Sep 13, 2021 11:49AM EDT

This Restaurant Software Provider Targets Over $16B Valuation In US IPO

* Toast Inc (NYSE:TOST) aims for a valuation of over $16 billion in its U.S. initial public offering (IPO), based on the expected 499.3 million shares of Class A common stock and Class B common stock outstanding after this offering.

* The technology platform purpose-built for the restaurant community proposes selling 21.74 million Class A shares priced at an estimated $30 - $33 per share to raise a maximum of $717.4 million.

* The IPO coincides with a pandemic-driven boom in demand for food delivery services that have supported businesses of DoorDash Inc (NYSE:DASH) and rivals Uber Eats (NYSE:UBER) and GrubHub Inc (NASDAQ:GRUB), Reuters reports.

* Toast has diversified its focus to delivery networks and contactless payment after the pandemic forced it to slash its workforce by half in early 2020.

* The startup valued at $5 billion in a February private round will list its stock on the New York Stock Exchange under the symbol "TOST."

* Price Action: DASH shares traded lower by 0.06% at $210.24 on the last check Monday.