Instacart valuation zooms above $14 billion after stock pops 43% in debut By Reuters

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<span>© Reuters. FILE PHOTO: Instacart employee Eric Cohn, 34, navigates a Safeway grocery store while preparing a delivery order while wearing a respirator mask to help protect himself and slow the spread of the coronavirus disease (COVID-19) in Tucson, Arizona, U.S., Ap</span><br />
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<p>By Niket Nishant</p>
<p>(Reuters) -Instacart’s shares jumped as much as 43% in their Nasdaq debut on Tuesday, giving the grocery delivery app a valuation of more than $14 billion days after SoftBank (TYO:)’s <span itemscope="" itemtype="http://schema.org/Corporation"><span itemprop="name"> Arm </span></span> Holdings (NASDAQ:) entered Wall Street with a bang.</p>
<p>San Francisco-based Instacart’s IPO was priced at the top end of its $28 to $30 price range, raising a total of $660 million in proceeds, out of which $237 million will go to investors who sold their shares in the offering. </p>
<p>The IPO gave Instacart a valuation of nearly $9.9 billion, a fraction of the $39 billion it was worth in 2021, the company’s last funding round. </p>
<p>Several startups have had to take a cut to their valuations since 2022 as inflation, geopolitical tensions and the Federal Reserve’s rapid rate hikes soured the economic climate.</p>
<p>Instacart’s strong debut, along with those of chip designer Arm and RayzeBio last week, could encourage other startups to test the waters and potentially revive the IPO market after a near 18-month dry spell.</p>
<p>Still, a lukewarm reception to Neumora Therapeutics’ IPO last week hinted at limited investor enthusiasm for new listings, with the market nowhere near the exuberance of 2020 and 2021.</p>
<p>“The IPO market is very much a ‘buyer’s market’ for now, and companies that want to access the IPO market need to be prepared (to offer) that discount (on the IPO price),” said David Erickson, a senior fellow and finance lecturer at the Wharton School of the University of Pennsylvania.</p>
<p>“That discount will reduce if the next several IPOs, including Instacart, price well and continue to trade well,” Erickson added.</p>
<p>Instacart is debuting almost three years after kicking off preparations for going public, with the company’s long slog to Nasdaq featuring some key moments.</p>
<p>Its core business turned profitable in 2022, and the trend has continued in the first six months of 2023, the company disclosed in its regulatory filing last month. </p>
<p>In 2021, its co-founder Apoorva Mehta stepped down after seven years at the helm and named Fidji Simo, the former head of Meta’s Facebook (NASDAQ:) app, its CEO.</p>
<p>Goldman Sachs and J.P. Morgan are the lead underwriters for Instacart’s IPO.</p>
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<br /><a href="https://www.investing.com/news/stock-market-news/instacart-set-for-wall-street-debut-days-after-arms-fiery-entry-3177451">Source link </a></p><p>The post <a href="https://forextraderhub.com/instacart-valuation-zooms-above-14-billion-after-stock-pops-43-in-debut-by-reuters.html">Instacart valuation zooms above $14 billion after stock pops 43% in debut By Reuters</a> first appeared on <a href="https://forextraderhub.com">Forex Trader Hub</a>.</p>