Grocery delivery company Instacart on Friday raised the price range for its initial public offering, following a stellar debut for shares of chip designer
Arm Holdings.
In a filing with the Securities and Exchange Commission, Instacart raised the offering price to between $28 and $30 a share, up from $26 to $28. Taking into account stock options and restricted stock units, Instacart’s total valuation is now $9.3 billion to $9.9 billion, higher than the earlier target of $8.6 billion to $9.3 billion.
The bump higher came after markets saw traders flocking to buy shares in Arm (ticker: ARM) following its debut on Thursday. Arm stock opened at $56.10 a share, 10% higher than its IPO price, and closed at $63.59.
Instacart may debut sometime next week under the stock symbol “CART.”
As part of the deal,
PepsiCo
(PEP) has agreed to purchase $175 million of Instacart’s Series A redeemable convertible preferred stock.
Maplebear, as the Instacart parent is formally known, was founded in 2012. It filed to go public on Aug. 25 after a long wait. The Instacart IPO, along with ARM’s offering, has set the stage for what investors believe could be a wave of IPOs in the coming months.
Write to Karishma Vanjani at [email protected]
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