Instacart announced its updated filing for the highly anticipated initial public offering (IPO) on Monday. The company aims to raise up to $616 million, differentiating between fresh capital and existing shareholders, with a valuation reaching $9.3 billion.
In the IPO, Instacart plans to offer shares at a price range of $26 to $28. This offering will consist of 14.1 million newly issued shares from the company and 7.9 million shares from selling stockholders. If the IPO’s pricing lands on the higher end bracket, the company is projected to generate approximately $616 million in proceeds.
Instacart is expected to secure a valuation between $8.6 billion and $9.3 billion. The fully diluted share count will stand at 331 million, inclusive of restricted stock units, stock options, and warrants.
PepsiCo, the multinational food giant, is set to become an investor in Instacart, securing $175 million of shares through a concurrent private placement. Goldman Sachs, one of the underwriters, will facilitate the private placement and receive a fee equal to 1.5% of the total purchase price of shares sold.
Norges Bank Investment Management, Norway’s sovereign wealth fund, has expressed interest in becoming a cornerstone investor in Instacart’s IPO. The fund plans to invest up to $400 million in the offering alongside TCV, Sequoia Capital, D1 Capital Partners, and Valiant Capital Management. However, the underwriters and cornerstone investors retain the ability to adjust their involvement in the IPO.
Instacart, one of the largest online grocery delivery firms in the United States, is preparing for one of the year’s major public flotations. The company competes with both traditional retailers and tech giants like Amazon, DoorDash, GoPuff, and Grubhub.
The updated IPO filing coincides with British chip design firm Arm’s impending blockbuster debut, which could result in a valuation of up to $52 billion. Arm estimates that the New York IPO could generate up to $4.87 billion in fresh capital.
After a year-long pause due to higher interest rates and rising inflation, the IPO market is being tested with these upcoming listings. Investor performance will heavily depend on market conditions at the time of the companies’ initial listings.
Clarification: The headline of this story has been updated to clarify the valuation using the total share count on a diluted basis.
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