Instacart Seeks Valuation of a Less Than $10 Billion in IPO

Instacart is preparing for its upcoming initial public offering (IPO) with a target valuation that is notably below its previous valuations. As reported by the Wall Street Journal on Sunday, the company is aiming for a valuation in the range of approximately $8.6 billion to $9.3 billion. This valuation marks a significant reduction from its peak valuation of nearly $40 billion just a couple of years ago.

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The Journal further noted that Instacart is planning to commence its investor marketing efforts as early as Monday, although the valuation target may still undergo adjustments prior to the IPO launch later this month. Notably, Instacart had experienced fluctuations in its valuation, initially reaching $39 billion during a fundraising round in 2021. Subsequently, the company had revised its internal valuation multiple times before raising it by 18% to approximately $12 billion earlier this year, as reported by The Information in August.

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Headquartered in San Francisco, Instacart is anticipated to be listed on the Nasdaq stock exchange under the ticker symbol CART. The IPO will be led by Goldman Sachs and JPMorgan Chase as the lead book-running managers.

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In a related development, the Financial Times reported on Friday that Arm Holdings Ltd.'s IPO has garnered significant oversubscription, exceeding five times the demand. However, concerns have arisen among some bankers regarding potential issues related to the listing's size and the involvement of numerous banks. Arm Holdings, owned by SoftBank, is planning to go public this week with shares priced in the range of $47 to $51, resulting in an expected valuation of approximately $50 billion. Reuters reported on Sunday that Arm intends to set its offering price at the upper end of this range or possibly higher.

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These long-anticipated IPOs are poised to inject renewed momentum into the IPO market, which has been gradually thawing after a prolonged period of dormancy since the previous year.

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