Instacart Raises Price Range for IPO, Aims for $10 Billion Valuation
San Francisco-based grocery delivery app Instacart has revised its proposed price range for its upcoming initial public offering (IPO), targeting a fully-diluted valuation of up to $10 billion. This move comes after a successful debut for chip designer Arm Holdings, indicating strong investor demand for Instacart.
The IPO, which is set to take place this month, has been highly anticipated after years of waiting. Instacart now plans to sell 22 million shares at a price range of $28 to $30 each, compared to its previous range of $26 to $28 each. At the upper end of the range, the IPO could fetch $660 million, surpassing the earlier target of $616 million.
It is important to note that the revised valuation target of $10 billion is still significantly lower than the $39 billion valuation Instacart had after its last funding round over two years ago.
In addition to the shares being sold by Instacart, existing investors could potentially sell up to $237 million worth of shares. Cornerstone investors have also shown interest in purchasing up to $400 million worth of shares, which would account for around two-thirds of the total proceeds if priced at the top end of the range.
September has proven to be a busy month for new listings, with traditional U.S. IPOs already raising over $5 billion, making it the second biggest month for share offerings this year.
Instacart’s IPO signals the growing popularity and potential for success in the grocery delivery market. With the COVID-19 pandemic accelerating the shift to online shopping, Instacart has experienced significant growth and aims to capitalize on its momentum through a successful public listing.
The news was reported by Niket Nishant in Bengaluru; Editing by Krishna Chandra Eluri and Arun Koyyur.
(Note: This news article is based on the provided content and does not reflect the views or opinions of any individuals or organizations mentioned.)