Grocery delivery app Instacart has raised the proposed price range for its initial public offering, revising its terms to target a fully-diluted valuation of up to $10 billion a day after a smooth debut from Arm Holdings.
September is gearing up to be one of the busiest spells for new listings in recent memory. Shares of Neumora Therapeutics, another portfolio company of SoftBank, are set to start trading on Friday while marketing firm Klaviyo is also looking to list in the next few weeks.
Investors will be pinning hopes on robust debuts from Instacart, Klaviyo and Neumora to carry the momentum in the IPO market after Arm's strong showing on Thursday (14 September).
Instacart said it is now seeking to sell 22 million shares at $28 to $30 each. It was earlier aiming to sell those shares priced between $26 and $28 each.
At the top end of the range, the IPO will fetch $660 million (€619 million) compared with the earlier target of $616 million (€578.1 million).
The company's raised valuation target, however, would still be just one-fourth of the $39 billion (€36.6 billion) it was worth after its last funding round more than two years ago.
Cornerstone investors have indicated they will buy up to $400 million (€375.4 million) worth of shares in the IPO, which would account for around two-thirds of the total proceeds if they were priced at the top end of the range.
PepsiCo has also agreed to buy $175 million (€164.2 million) of the company's preferred stock.
Goldman Sachs and J.P. Morgan are the lead underwriters for Instacart's offering.