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Instacart Prices I.P.O. at $30 a Share, Raising $660 Million

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Technology|Instacart Prices I.P.O. at $30 a Share, Raising $660 Million

https://www.nytimes.com/2023/09/18/technology/instacart-ipo-share-price.html

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The grocery delivery company priced its offering at the high end of expectations, in a potentially upbeat sign for tech public offerings.

The San Francisco headquarters of Instacart, whose path to a public market has been closely watched from Silicon Valley to Wall Street.Credit...Jim Wilson/The New York Times

Instacart on Monday priced its shares at $30 each for its initial public offering, at the top of its expected range, in a sign of renewed demand for tech stocks.

The San Francisco-based grocery delivery company had estimated that its shares would be priced at $28 to $30 a share. Instacart raised $660 million in the offering and was valued at $9.9 billion, significantly below its last private fund-raising round in 2021, which valued the company at $39 billion.

The shares will begin trading on Tuesday on the Nasdaq stock exchange under the ticker symbol CART.

Instacart's offering showcases one of the largest gaps between a company's private and public market valuations, serving as a reality check for other highly valued, closely held start-ups. Many companies that raised money during the boom times of 2020 and 2021 have slashed their soaring valuations over the last year.

But the fact that Instacart pulled off an I.P.O. at all could give hope to other companies seeking to tap the public markets. Before last week, this had been the worst year for I.P.O.s since 2009, according to EquityZen, a marketplace for private stocks.

Instacart's pricing follows last week's successful debut for the chip designer Arm. Arm's stock was priced at the top of its proposed range and rose 25 percent on its first day of trading.

After Arm's I.P.O., Instacart raised its proposed price range.

Instacart's path to the public market, alongside that of Klaviyo, a marketing tech company that will also list its shares this week, has been closely watched from Silicon Valley to Wall Street. A positive reception could persuade more companies to tap the public markets to raise money.

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