The San Francisco-based company said late Monday that it had sold 22 million shares at $30 each, matching its earlier target price range of $28 to $30. At $30 a share, Instacart has a market value of $9.9 billion based on the company’s fully diluted share count.
The IPO will raise a total of $660 million, with about $420 million going to the company. The company is set to begin trading on Nasdaq on Tuesday under the symbol “CART”.
Instacart was one of the most watched IPOs of the year, following the listing of Chip Designer.
Arm Holdings
(symbol: ARM) last week. Taken together, they are expected to open the window to an IPO market that has been quiet for most of the year. Marketing software company Clavio is going public this week.
Arm has shown strong interest in its shares, with the stock up 10% from its IPO price, but the enthusiasm has since died down. Shares fell 4.5% on Friday and closed the same amount on Monday.
How Instacart trades on Tuesday and beyond will depend on future investor confidence in the expansion and profitability of the gig economy. MapleBear, as Instacart is formally known, generated $2.55 billion in revenue last year, up 39 percent from a year earlier. About three-quarters of its revenue comes from the company’s core business of delivering groceries to homes with the help of contractors. The rest comes from other services and a new offering called Instacart Ads, where retailers pay to show ads to customers.
In 2020 and 2021, Instacart had a net loss of $70 million and $73 million, respectively. In the year It generated $428 million in net income in 2022, though most of that came from a $358 million tax benefit.
At a $30 share price tag, Instacart is worth nearly four times its annual sales.
DoorDash
( DASH ), named as a competitor in Instacart filings, has a similar price-to-sales ratio of 4.1 times. DoorDash has consistently increased annual sales since going public in 2020, but the company hasn’t been able to turn a profit per share.
Instacart also lists UberEats, part
Uber technologies
(UBER), and Shipt, owned by Target, as competitors.
Founded in 2012, Instacart, After a long wait, it officially went public on August 25 – the company had first. Submitted a confidential registration statement For an IPO in May 2022. Instacart was valued at $39 billion, far from its current valuation, in a private fundraising round.
A relatively low price tag could help the company get what it calls opening day pop. According to company rules, shares must close above 120% of the IPO price for five trading days, but it could benefit employees if they allow them to exercise their stock options sooner. A strong first session, however, does not guarantee long-term strength in stocks.
Write to Karishma Vanjani at [email protected]
