Instacart Seeks a $10B Valuation After ARM’s Successful IPO: Report
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Instacart Seeks a $10B Valuation After ARM’s Successful IPO: Report

Instacart could be valued at $10 billion at its IPO as the company seeks to raise its target price following Arm's hot debut.
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Delivery firm Instacart is set to seek a higher initial public offering (IPO) target price range after Arm’s listing restored market optimism. Instacart wants to hike the target price to $28 – $30, which could value the business at almost $10 billion, as the Wall Street Journal (WSJ) reported on Friday. 

Instacart to Raise IPO Target Range

According to a WSJ report, Instacart is expected to hike the target price for its long-awaited IPO after Arm’s successful public debut showed a resurgence in substantial interest in new listings. Per the report, the delivery company is set to file with the Securities and Exchange Commission (SEC) to raise the target price to $28 – $30 apiece, up from the previous range of $26 to $28.

As a result, the higher end of the new range would value Instacart at almost $10 billion on a fully diluted basis. While this represents a significant leap, the latest valuation range is still far from the $39 billion Instacart attained after its funding round in 2021, right before investors’ interest in startups plummeted.

The company has secured over $2 billion in venture capital (VC) financing across more than 19 rounds. The amended filing to raise the IPO price target could be issued as soon as Friday. 

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Arm’s Successful Debut Brings Back IPO Market Optimism

The reports come just a day after Arm, a chipmaker owned by SoftBank, saw a successful IPO launch, with its share price jumping over 25% on the debut day. The notable surge propelled Arm’s market cap to roughly $65 billion on Thursday.

The UK-based company began trading in New York with 95.5 million shares, which opened trading at $56 apiece, 10% higher than the IPO price. The stock closed at $63.59, marking the largest IPO since Rivian’s in 2021. 

The successful launch brought much-needed relief to startup investors and the broader IPO market, which has experienced a nearly 2-year drought due to record-high interest rates and the tepid performances of earlier IPOs. Interestingly, Arm is unlikely to be included in significant exchange-traded funds (ETFs).

In addition to Arm and Instacart, the public debut of marketing automation company Klaviyo is one of the three biggest IPOs scheduled for September. Klaviyo is seeking a fully-diluted valuation of up to $8.4 billion, it said on Monday. 

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Do you think Instacart will also attract strong interest from investors, akin to Arm? Let us know in the comments below.