News Column

GrubHub files for another stock offering

August 25, 2014

By Jessica Wohl, Chicago Tribune

Aug. 25--GrubHub Inc. on Monday said that it has filed a registration statement for a proposed follow-on public offering of its common stock, months after the online food ordering service went public in early April.

Shares of GrubHub quickly fell below $40 in morning trading, and were last down 5.1 percent at $40.58 on the New York Stock Exchange.

The underwriters for GrubHub's April IPO agreed to waive lock-up restrictions, permitting the company and selling stockholders to file the proposed registration with the U.S. Securities and Exchange Commission and permitting the company to offer and sell shares, GrubHub said. The lock-up restrictions for the selling stockholders are set to be waived immediately before the execution of an underwriting agreement, which would enable them to offer and sell shares in the proposed offering, the company said.

When Chicago-based GrubHub debuted on the New York Stock Exchange on April 4, its shares rose as high as $40.80 and ended the trading day at $34, a gain of 31 percent from the $26 offer price.

Citigroup, Morgan Stanley and BofA Merrill Lynch will act as book-running managers for the proposed offering, GrubHub said. Allen & Company LLC, BMO Capital Markets Corp., Canaccord Genuity Inc., Raymond James & Associates, Inc. and William Blair & Company, L.L.C. will act as co-managers for the proposed offering, the company said.

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Source: Chicago Tribune (IL)

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