Following Arm Holdings’ impressive debut, grocery delivery startup Instacart revised its parameters to aim for a fully diluted valuation of up to $10 billion for its initial public offering (IPO) on Friday.
The price increase indicates strong investor interest in the San Francisco-based business, planning to list its shares this month after waiting years in the wings.
One of the busiest seasons for new listings is set to be September. In choppy early trade on Friday, shares of SoftBank’s (9984.T) chip designer Arm were up nearly 3%, extending gains from their robust close on the opening day of trading.
While marketing business Klaviyo plans to list in the coming weeks, Neumora Therapeutics, another portfolio company of the major Japanese investment firm, is about to begin trading.
According to statistics from Dealogic, traditional U.S. IPOs have raised more than $ othan$5 billion so far in September, making it the second-largest month for such share offerings this year.
Compared to its prior price range of $26 to $28, Instacart said that 22 million shares will be auctioned at $28 to $30 each. As opposed to the initial objective of $616 million, the IPO will ultimately raise $660 million.
Up to $237 million of the total revenues could be distributed to current Instacart shareholders wishing to sell their shares.
Although the company’s target valuation has increased, it would still only be worth around one-fourth of the $39 billion it was valued at during its previous investment round years ago.
Cornerstone investors have declared their intention to purchase up to $400 million worth of shares, representing almost two-thirds of the profits if priced at the upper end of the range.
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