DoorDash, the food delivery company, has announced its intention to transfer its listing from the New York Stock Exchange (NYSE) to the Nasdaq, which could be seen as a setback for the NYSE.
Starting from September 27, DoorDash plans to commence trading on the Nasdaq under the same ticker symbol, “DASH,” as per a recent filing.
DoorDash’s Chief Financial Officer, Ravi Inukonda, expressed enthusiasm about the move, stating, “We are delighted to join a community of leading technology companies with our transfer to Nasdaq.”
The NYSE has been striving for several years to attract more listings from tech companies and to gain ground against the Nasdaq. Over the years, the Nasdaq has dominated in terms of tech company initial public offerings (IPOs), with nearly 7,000 IPOs between 1983 and 2022. In contrast, the NYSE recorded just under 1,400 tech company IPOs during the same period, according to data compiled by the University of Florida’s Jay Ritter.
DoorDash’s decision to switch listings comes at a time when the tech IPO market appears to be reinvigorating after a slowdown since late 2021. Recently, the U.K.-based chip design firm Arm went public on the Nasdaq, while Instacart filed for its Nasdaq debut last month, where it listed DoorDash as a competitor in its prospectus. Additionally, cloud software vendor Klaviyo filed to go public on the NYSE last month.
DoorDash originally commenced trading on the NYSE in December 2020 at a price of $182 per share. Its debut coincided with a period of heightened interest in tech IPOs, occurring shortly after Airbnb, Roblox, and Wish went public. Among these companies, only Roblox currently trades on the NYSE.