Instacart, the biggest online grocery-delivery company in America, is reportedly planning an initial public offering (IPO) for this September in what could be a major boost to equity markets.
Multiple media reports say that Instacart is preparing to publicly file its plans for an IPO with the U.S. Securities and Exchange Commission (SEC) by the end of August.
Instacart is planning a traditional IPO and will list its stock on the technology-laden Nasdaq exchange.
The exact value of Instacart’s IPO has not yet been determined. However, the company’s most recent internal valuation was set at $13 billion U.S.
A listing by San Francisco-based Instacart would be a much-needed shot in the arm for new stock listings in the U.S. and globally.
The market for new stock offerings has cratered in the wake of the 2022 bear market. So far this year, only $14 billion U.S. has been raised in IPOs on U.S. exchanges, down from $241 billion U.S. during the record-setting 2021 IPO year, according to data from Bloomberg Markets.
There is other evidence that the IPO market is starting to heat up again.
In addition to Instacart, British chipmaker Arm is expected to hold its IPO in September of this year, an event that is expected to raise as much as $10 billion U.S.
Instacart will be required to disclose details of its finances and operations as part of its IPO filing with the SEC, providing investors with a window into the company.
The grocery-delivery company has reportedly hired investment banks Goldman Sachs (GS) and JPMorgan Chase (JPM) to manage its upcoming IPO.
Instacart previously raised $2.74 billion U.S. as a start-up company and was valued at $39 billion U.S. during the stock market’s peak in autumn 2021.
Early investors in Instacart include private equity firms such as Tiger Global Management and D1 Capital Partners, according to data from PitchBook.
