|
The
targeted value is much cheaper than the $39 billion price tag
that the San Francisco-based company had fetched in its last
funding round in 2021, when easy money helped several startups
reach sky-high valuations.
As the Federal Reserve raised borrowing costs to tame inflation,
several high-flying startups have had to raise funds at lower
valuations.
Instacart too has had to cut its internal valuation to as low as
$10 billion in December in its long walk toward a Nasdaq debut.
It is expected to list in September, almost three years after
Reuters reported that the company had picked Goldman Sachs to
lay the groundwork for an IPO.
Instacart would join SoftBank's chip designer Arm and marketing
automation firm Klaviyo, which are also gearing up for market
debuts in September.
If successful, the listings could nurture a nascent recovery in
the U.S. IPO market amid growing expectations of a pause in rate
hikes by the Fed.
The rush toward market debuts follows a lull in new listings for
a major part of the last two years following Russia's invasion
of Ukraine and a surge in borrowing costs.
Instacart and its selling shareholders are looking to raise up
to $616 million by offering 22 million shares priced between $26
and $28 each, it said in a regulatory filing.
It filed for the IPO as "Maplebear," the name under which it is
incorporated. Its shares are expected to trade on the Nasdaq
under the symbol "CART."
Cornerstone investors Norges Bank Investment Management, a
division of Norges Bank, and entities affiliated with venture
capital firms TCV, Sequoia Capital, D1 Capital Partners and
Valiant Capital Management have agreed to buy up to $400 million
of Instacart's stock, the filing said.
Goldman Sachs and J.P.Morgan are the lead underwriters.
(Reporting by Niket Nishant and Manya Saini in Bengaluru;
Editing by Arun Koyyur)
[© 2023 Thomson Reuters. All rights
reserved.]
This material may not be published,
broadcast, rewritten or redistributed.
Thompson Reuters is solely responsible for this content.
|
|
