Instacart, the popular grocery delivery service, recently released its S-1 filing with details about its upcoming IPO. In a bold move, the company has proposed a price range of $26 to $28 per share for its debut, signaling its ambitions to become a decacorn.
Instacart’s proposed IPO price range indicates that the company is positioning itself as a potential decacorn, with a valuation of around $9.1 billion. Despite being lower than its final private-market price, the discount is not surprising given the current market climate for tech companies.
The proposed IPO is set to include the sale of 22 million shares, potentially raising up to $616 million in capital. However, only 14.1 million shares will come directly from Instacart, with the remaining 7.9 million coming from existing shareholders.
Considering other factors such as a 3.3 million share underwriter option and a $175 million Series A redeemable convertible preferred stock with Pepsi’s involvement, the estimated IPO valuation range for Instacart is between $7.2 billion and $7.8 billion. When factoring in the fully diluted share count, the potential market cap of the company could reach $8.6 billion to $9.3 billion.
Back in 2021, Instacart’s private-market price reached approximately $30 billion, making the current valuation seem like a significant decline. However, it is essential to consider that many tech companies, regardless of their scale, have experienced valuation cuts in recent years.
The pricing range for the IPO showcases Instacart’s confidence in capturing the attention and investment of potential shareholders. As a company at the forefront of the online grocery delivery market, Instacart aims to leverage its position to secure further growth and establish itself as a dominant player in the industry.
Despite the valuation decrease, the IPO launch represents a significant milestone for Instacart, and its success in the public markets will determine its future trajectory. Investors will be closely monitoring the company’s performance and potential for continued innovation and expansion.
In conclusion, with its proposed IPO price range, Instacart is positioning itself as a potentially high-value player in the market, aiming to become a decacorn and secure its position as a leader in the online grocery delivery space.