Instacart set for Wall Street debut days
after Arm's fiery entry
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[September 19, 2023]
(Reuters) - Shares of grocery delivery app Instacart were set to
start trading on the Nasdaq on Tuesday, the second high-profile debut in
days after SoftBank's Arm Holdings entered Wall Street with a bang.
A strong debut, like chip designer Arm and RayzeBio had last week, could
encourage other startups to test the waters and potentially revive the
IPO market after a near 18-month dry spell. |
![](../images/091923PIX/busine86.jpg)
Instacart employee Eric Cohn, 34, navigates a Safeway grocery store
while preparing a delivery order while wearing a respirator mask to help
protect himself and slow the spread of the coronavirus disease
(COVID-19) in Tucson, Arizona, U.S., April 4, 2020. Picture taken April
4, 2020. REUTERS/Cheney Orr/File Photo |
San
Francisco-based Instacart priced its IPO at the top end of its
raised range of $28 to $30 and raked in a total of $660 million
in proceeds, out of which $237 million will go to investors who
are selling some of their shares alongside the company.
The offering gave Instacart a valuation of nearly $9.9 billion,
a fraction of the $39 billion it was worth in 2021, the
company's last funding round.
Instacart is debuting almost three years after kicking off
preparations for going public and several startups have had to
take a cut to their valuations since 2022 as inflation,
geopolitical tensions and the Federal Reserve's rapid rate hikes
soured the economic climate.
The company's long slog to Nasdaq featured some key moments.
In 2021, its co-founder Apoorva Mehta stepped down after seven
years at the helm and named Fidji Simo, the former head of
Meta's Facebook app, its CEO.
Its core business also turned profitable in 2022, and the trend
has continued in the first six months of 2023, the company
disclosed in its regulatory filing last month.
Goldman Sachs and J.P. Morgan are the lead underwriters for
Instacart's IPO.
(Reporting by Niket Nishant in Bengaluru; Editing by Devika
Syamnath)
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