Instacart Increases IPO Price Range Following Successful Arm Debut

By Better Today On Sep 15, 2023

Instacart’s IPO Hike

In a significant move, the grocery delivery app Instacart has raised its proposed price range for its forthcoming initial public offering (IPO). With its latest terms, the San Francisco-based firm is now aiming for a fully-diluted valuation of up to $10 billion. This comes on the heels of a successful debut for Arm Holdings.

This price hike reflects robust investor demand for Instacart, which has been preparing to list its shares for several years. The company is looking to officially go public this month. The increased anticipation around Instacart’s IPO is part of what is shaping up to be one of the busiest periods for new listings.

Market Performance of SoftBank’s Arm Holdings

Shares of SoftBank’s chip designer Arm saw a nearly 3% increase in early trading on Friday, building on the strong close on the first day of trading. This performance has likely contributed to the heightened expectations for Instacart’s IPO.

In addition to Instacart and Arm, another portfolio company of Japanese investment giant SoftBank, Neumora Therapeutics, is set to start trading soon. Marketing firm Klaviyo is also expected to list its shares in the coming weeks.

U.S. IPO Trends in September

So far, traditional U.S. IPOs have garnered more than $5 billion in September, according to data from Dealogic. This month is already the second biggest for such share offerings this year.

Instacart’s Revised IPO Terms

Under the revised terms, Instacart plans to sell 22 million shares at a price range of $28 to $30 each. This is a significant increase from its previous price range of $26 to $28 per share. If the shares are sold at the top end, the IPO will fetch $660 million, compared to the earlier target of $616 million.

The revised valuation target, however, will still be just one-fourth of the $39 billion Instacart was worth after its last funding round more than two years ago. Up to $237 million of the total proceeds could go to existing Instacart investors who are looking to sell their shares.

Cornerstone investors have indicated they will buy up to $400 million worth of shares. This would account for around two-thirds of the total proceeds if the shares were priced at the top end of the range.

Original Story at www.reuters.com – 2023-09-15 18:36:00