Online grocery delivery startup, Instacart Inc., is gearing up to set a price range for its initial public offering (IPO) and commence its investor roadshow as early as Monday, according to anonymous sources cited by Bloomberg. The company is also considering pricing its listing on September 19 and commencing trading the following day. However, these plans remain fluid and could alter based on market conditions.
The upcoming IPO of Instacart could serve as a catalyst for the IPO market, which has been warming in fits and starts. This comes after Arm Holdings Ltd., a semiconductor designer, set a price range for its own IPO, expected to be the biggest listing of the year, starting trading as early as next week.
Instacart's IPO is backed by PepsiCo (NASDAQ:PEP) Inc., as revealed in the prospectus. The company, founded in 2012, has been preparing to go public for years, aiming to capitalize on its increased popularity during the coronavirus pandemic when online grocery shopping became mainstream.
The company raised $2.74 billion as a startup and was valued at $39 billion in 2021, according to data from PitchBook. However, as the pandemic began to wane and diners started returning to restaurants from lockdowns, Instacart’s growth also faded. This led to the company slashing its internal valuation three times last year to about $13 billion by October.
Despite these developments, no official confirmation regarding the IPO has been made by any representative from Instacart yet. The timeline for the IPO remains subject to change based on market conditions.
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