(AUSTRALIA) – Instacart, the grocery delivery giant, is accelerating its plans to price its initial public offering (IPO) on Monday, having initially contemplated a later launch next week.
This decision comes following the impressive trading debut of Arm Holdings, signaling a potential reopening of the IPO market.
Instacart, based in San Francisco and operating under the name Maplebear Inc for its IPO, is looking to raise up to $660 million by offering shares at a price range of $28 to $30 each.
This revised pricing range is an increase from the previously indicated $26 to $28 per share and could potentially lead to a fully diluted equity valuation of up to $9.9 billion if the IPO prices at the top of the updated range.
The move to accelerate its IPO plans aligns with the ever-fluctuating nature of such offerings, often dictated by market conditions. Representatives for Instacart declined to comment on the matter.
Instacart pricing ahead of $1 billion IPO
This adjustment in Instacart’s pricing range comes on the heels of Arm Holdings’ remarkable 25% surge during its IPO debut, a development anticipated to pave the way for other companies seeking to go public.
Arm’s stock experienced fluctuations in trading on Friday in New York, with brokerage firm Needham & Co initiating coverage of Arm and assigning a “hold” rating.
Charles Shi, an analyst at Needham & Co, noted that the valuation of Arm appears to be fully priced, suggesting limited upside from its IPO valuation.
Instacart, founded in 2012, has been preparing for its IPO for several years, aiming to capitalize on its pandemic-driven popularity and dominant position in the US grocery delivery sector.
However, the company has faced challenges as the pandemic’s influence waned and investors grappled with concerns over higher interest rates, inflation, and the possibility of a recession.
Consequently, Instacart slashed its internal valuation multiple times in 2022, ultimately settling at approximately $13 billion in October.
Instacart’s CEO, Fidji Simo, who took over from co-founder Apoorva Mehta in 2021, now faces the task of persuading investors of her strategy to shift the company’s focus from grocery delivery to grocery technology, leveraging the vast consumer data it gathers to enhance grocery store sales.