Instacart’s slimmed-down IPO valuation

Instacart is targeting a smaller version of itself when it goes public, valued at a sliver of what it was during the height of the pandemic.

The online grocer’s valuation is expected to be in the $8 billion range, a far cry from the $30+ billion it was valued at in 2021, as reported by Reuters.

The company plans to offer 14,100,000 shares of common stock and an additional 7,900,000 shares, which will trade under the ticker CART. Those are expected to price between $26 to $28, and the company aims to raise about $616 million, according to the SEC filing.

Instacart is entering a crowded field with big rivals that include Amazon and Walmart.

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Instacart controls about 22% of the $132 billion U.S. online grocery-delivery market, according to Evercore.

The company said it had 5.1 million users as of June 2023, up from 4.6 million in the year-ago period. 

The deal, along with Arm Holdings expected this week, will help revive IPOs that have slowed due to inflation and the Federal Reserve’s 11 interest hikes since 2021. There were 181 deals in 2022, down from 1,035 in 2021, as tracked by Stock Analysis.

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Additionally, PepsiCo agreed to purchase $175 million of Series A redeemable convertible preferred stock, or the Series A Preferred Stock, in a private placement.

Due to SEC guidelines, Instacart could not provide comment to FOX Business at this time.