GrubHub, the online food ordering service familiar to legions of office workers, has raised its expectations for its Wall Street debut.
The company said in an amended prospectus on Tuesday that it expected to price its stock at $23 to $25 a share in its initial public offering. Previously, GrubHub estimated a price range of $20 to $22 a share.
At the midpoint of the updated range, the offering would raise $169 million and value the company at $1.88 billion.
GrubHub, which merged with Seamless last summer, is betting that investors will fill up their plates with an even bigger helping of shares. The stock market remains buoyant, and a number of technology I.P.O.’s this year â€" with the notable exception of King Digital Entertainment last week â€" have performed well.
The majority of the 7.03 million shares to be sold in the GrubHub offering will come from the company itself, while its major investors, including the private equity firms Spectrum Equity, Warburg Pincus and Thomas H. Lee Partners, plan to sell about 3 million shares.
After the offering, the directors and officers of GrubHub, a group of 12 individuals, are expected to own about 34 percent of the company.
The company plans to list on the New York Stock Exchange with the ticker symbol GRUB. Citigroup and Morgan Stanley are leading the offering.
