Instacart, the popular grocery-delivery platform, is reportedly considering revising its initial public offering (IPO) target price upwards following the impressive performance of Arm Holdings Plc's (NASDAQ: ARM) IPO debut. The company is contemplating selling its shares in the range of $28 - $30 per share, up from the prior $26 - $28 target, as it prepares to file an amended offering with the SEC, the Wall Street Journal reports.
Instacart's shares will likely start trading on the Nasdaq exchange under the ticker 'CART' the following week.
If Instacart proceeds with the higher pricing, its fully diluted valuation could approach nearly $10 billion. The report adds that this decision reflects the growing appetite among investors for IPOs.
Based in San Francisco, the grocery delivery firm has evolved under the leadership of its new CEO, Fidji Simo, diversifying into various sectors, including advertising and technology services. Despite its success, this valuation is notably lower than the $39 billion it commanded in a funding round in 2021, highlighting the changing dynamics in the startup investment landscape.
Instacart saw a 31% growth in revenue to $1.5 billion, while advertising and other businesses boosted the revenue by about 24% in the same period.
Instacart's impending IPO holds significance as it represents a potential resurgence in the IPO market, which had been relatively subdued due to rising interest rates and the underwhelming performance of recent new listings. The successful debut of Arm, a British chip designer, with its shares surging 25% on the first day, has injected optimism into the market.