Grocery delivery company Instacart has raised the price range for its initial public offering (IPO) that is expected to take place on September 22, targeting a valuation of $10 billion U.S.
The latest valuation comes after the successful IPO of British chipmaker Arm Holdings (ARM), whose stock rose 25% on its first day of trading on September 14.
Instacart said in a revised prospectus that it aims to sell 22 million shares in a price range of $28 U.S. to $30 U.S. each, up from a previous range of $26 U.S. to $28 U.S. each.
At the top end of the revised price range, the IPO will earn $660 million U.S. compared with the earlier target of $616 million U.S.
Of the total proceeds raised from the IPO, $237 million U.S. will go to existing Instacart investors looking to sell their shares in the company.
Instacart’s valuation is just one-fourth of the $39 billion U.S. the company was valued at during its last funding round two years ago when the stock market was at a peak.
Instacart is expected to trade on the Nasdaq exchange under the ticker symbol “CART.”
