Instacart Plans for September IPO in Boost for US Listings

Instacart plans September IPO on Nasdaq, signaling optimism for US listings amid market challenges.
  • The largest US company that delivers groceries wants to go public on Nasdaq.
  • Instacart’s funds could be made public in a filing next week.

People who know about the situation say that Instacart Inc. is looking to go public as soon as September. This could help US listings get back on their feet.

People who asked not to be named because the information was private said that the biggest online grocery delivery company in the US could file its plans for an IPO with the US Securities and Exchange Commission as soon as next week. People say that Instacart, which had been thinking about a direct listing, now wants to do a standard IPO on the Nasdaq.

A representative for Instacart, which is based in San Francisco, refused to say anything.

Instacart will share new information about its funds and business in its IPO filing. Most likely, the document will only have a placeholder for the terms of the offering. The company will define the size and price of the share sale in later filings.

Last year, Instacart said that it had filed with the SEC in secret to go public. At the time, Bloomberg News said that the company was working with Goldman Sachs Group Inc. and JPMorgan Chase & Co.

As the market for new listings got worse, Instacart put its plans on hold. Bloomberg News reported in October that CEO Fidji Simo told staff in a memo that “extremely tumultuous” markets made it “highly unlikely” that an IPO would happen that year.

That happened after Instacart cut its internal value from $24 billion to about $13 billion earlier in the year.

Data provider PitchBook says that Instacart raised $2.74 billion as a company and was worth $39 billion in 2021. PitchBook says that Tiger Global Management, Coatue Management, and D1 Capital Partners are among the many companies that have invested in it.

According to data gathered by Bloomberg, only $14 billion has been raised by 109 companies through initial public offerings (IPOs) on US markets this year. That’s less than the $241 billion and 745 listings at this point in 2021, which was the best year ever for IPOs.

A launch by Instacart would give a market that has been slowly getting warmer a boost. Arm Ltd., which makes chips and is mostly owned by SoftBank Group Corp., wants to go public in September and raise $8 billion to $10 billion, making it the biggest IPO of the year.

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