Online grocery firm Instacart seeks up to $9.3 billion valuation in IPO
On Monday, Instacart submitted a new document for their upcoming initial public offering. They mentioned that they are hoping to collect as much as $616 million in new funds and existing shareholders would also participate. This new plan values the company at a maximum of $9.3 billion.
Instacart has announced that its upcoming initial public offering (IPO) will have an offer price range of 26 to 28 dollars. The company will be issuing a total of 22 million shares, with 14.1 million of these shares being newly issued by the company and 7.9 million shares being sold by existing stockholders. If the IPO is successful at the higher end of the proposed price range, Instacart is expected to receive approximately 616 million dollars in proceeds.
It appears that Instacart is going to be valued at somewhere between $8.6 billion to $9.3 billion. When we fully consider all potential shares, including restricted stock units, stock options, and warrants, the total count will be 331 million.
Instacart had announced earlier that PepsiCo, a global food conglomerate, was set to invest in the company by buying shares worth $175 million in a related private sale. The processing of the private sale will be conducted by Goldman Sachs, one of the underwriters, and they will receive a transaction fee of 1.5% of the entire price of shares sold.
According to Instacart's documents, Norges Bank Investment Management, a significant sovereign wealth fund in Norway, has shown interest in being a major investor in the company's initial public offering (IPO). Together with TCV, Sequoia Capital, D1 Capital Partners, and Valiant Capital Management, the fund could buy around $400 million worth of the shares available for sale.
Yet, the underwriters have the option to increase or decrease the number of shares they sell to cornerstone investors. Similarly, investors also have the choice to purchase more or less shares, or to not purchase any shares at all during this offering, as stated by Instacart.
Instacart, a major American internet-based grocery delivery service, is set to make a huge public debut this year. It rivals both traditional brick-and-mortar retailers and technology companies such as Amazon, DoorDash, GoPuff, and Grubhub.
The updated initial public offering (IPO) filing of the company coincides with the anticipation of the highly successful debut of British chip design firm Arm, which could potentially receive a valuation of $52 billion. Arm revealed last week that the IPO in New York may bring about $4.87 billion in additional funding for the firm.
The upcoming IPOs will be a major challenge for the stock market as it has experienced a year-long halt due to the increase in interest rates and inflation. The investors are anticipating a positive response from the new set of public offerings; however, the progress will be heavily reliant on the conditions of the market during the companies' official listing dates.
Explanation: The title of this article has been modified to provide a clearer understanding of the value by considering all of the shares in circulation, including ones that could be issued in the future.