Grocery delivery company Instacart raised its initial public offering (IPO) price from a range of $26 to $28 to a range of $28 and $30 per share. The company raised its price target following the IPO success of British chip designer Arm Holdings (NASDAQ:ARM).
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After including stock options and restricted stock units, Instacart’s total valuation is now in the range of $9.3 billion to $9.9 billion, higher than its earlier valuation of $8.6 billion to $9.3 billion. The raised valuation is still way below the $39 billion level the company saw in its last funding round in 2021.
Instacart is expected to list next week under the stock symbol “CART.” The company expects to receive $550.5 million in net proceeds from this offering and the private placement of Series A Preferred Stock. This amount will increase to $640.9 million if the underwriters exercise their option to purchase additional shares of common stock. These estimates are based on the assumed initial public offering price of $29.00 per share at the midpoint of the price range
Once public, Instacart will compete with listed players in the home delivery space. These include Uber (NYSE:UBER), Lyft (NASDAQ:LYFT), and DoorDash (NYSE:DASH). Here is a look at how these listed players are faring currently with the help of the TipRanks Stock Comparison tool.
