In this photo from March 25, 2022, a smartphone is shown with the Instacart logo displayed. Portal/Dado Ruvic/Illustration/File Photo Acquire License Rights
Sept 15 (Portal) – Grocery delivery app Instacart on Friday raised its proposed price range for its initial public offering (IPO) and revised its terms to seek a fully diluted valuation of up to $10 billion, following a stellar debut from Arm Holdings to strive for.
The price increase signals strong investor demand for the San Francisco-based company, which plans to take its shares public this month after years of waiting.
September is gearing up to be one of the busiest times for new listings.
Shares of SoftBank chip designer Arm (9984.T) rose nearly 3% in volatile early trading on Friday, extending gains from their strong close on the first day of trading.
Another portfolio company of the Japanese investment giant, Neumora Therapeutics, is set to begin trading, while marketing firm Klaviyo is aiming for a stock market listing in the next few weeks.
Traditional U.S. IPOs have raised more than $5 billion so far in September, already the second-biggest month for such stock offerings this year, according to data from Dealogic.
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Instacart said it will sell 22 million shares at a price of $28 to $30 apiece, compared to its previous price range of $26 to $28 apiece. At the high end, the IPO will raise $660 million, compared to the previous target of $616 million.
Of the total proceeds, up to $237 million could go to existing Instacart investors who want to sell their shares.
However, the company’s raised valuation target would still be just a quarter of the $39 billion it was worth after its last funding round more than two years ago.
Cornerstone investors have said they will buy up to $400 million worth of shares, which if priced at the high end of the range would represent about two-thirds of the total proceeds.
Reporting by Niket Nishant in Bengaluru; Edited by Krishna Chandra Eluri and Arun Koyyur
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