Instacart’s $660 million IPO meets goal with market rebound

By Ryan Gould and Natalie Lung

Grocery delivery business Instacart priced its initial public offering at the top of a marketed range to raise $660 million in the second marquee listing in a week.

The San Francisco-based company sold 22 million shares for $30 each on Monday, according to a statement. Instacart and current shareholders had offered the shares for $28 to $30, a range that was elevated after chip designer Arm Holdings Plc rose 25 per cent in its trading debut Thursday after the year’s biggest IPO.

At the IPO price, Instacart has a fully diluted valuation of $9.9 billion. That’s a steep plunge from its $39 billion valuation in a 2021 funding round when its business boomed amid pandemic lockdowns, but still ranks it as one of the biggest companies to go public this year.

Instacart’s listing combined with Arm’s is also giving equity capital markets much-needed relief after the longest drought since 2009 in the depths of the financial crisis. As a venture-backed consumer startup, success in its trading debut could pry open the IPO market for other companies looking to go public.

Klaviyo, Birkenstock

Marketing and data automation provider Klaviyo Inc. is planning to sell its shares Tuesday, with German footwear maker Birkenstock Holding Ltd. also preparing to list.