Instacart, the parent company of popular grocery-delivery app, has increased its proposed price range for its forthcoming initial public offering (IPO) of 22 million shares. The new range is set at $28 to $30 per share, up from the previous target of $26 to $28.
The decision to raise the price range is a direct response to the successful IPO of British chip designer, Arm Holding. This move would value Instacart at nearly $10 billion on a fully diluted basis at the higher end of the range.
As part of the IPO, Maplebear (the formal name for Instacart's parent company) will sell 14.1 million shares, while existing investors will unload 7.9 million shares. Additionally, PepsiCo has plans to purchase $175 million of preferred stock.
If the IPO is successful and the underwriters exercise their option to buy an additional 3 million shares, net proceeds are expected to be approximately $550.5 million at a pricing midpoint of $29 per share, or roughly $640.9 million.
To further solidify its position in the market, Maplebear has already applied to list its shares on the Nasdaq Global Select Market under the symbol CART.