Instacart prices IPO at $30 a share, fetching US$9.9 billion valuation

The news: Grocery delivery app Instacart has priced its shares at the top end of its indicated USD28 to USD30 price range, fetching the company a USD9.9 billion fully diluted valuation, following strong investor demand.

The numbers: The IPO was priced at USD30 per share, and will raise USD660 million ($1.03 billion) based on 22 million shares sold. The shares are scheduled to start trading on Nasdaq later on Tuesday.

The context: The valuation is a fraction of the USD39 billion value that investors assigned to San Francisco-based Instacart in a private fundraising round in March 2021. However, its business has been more muted since the pandemic subsided. Key investors in the IPO include Norges Bank, venture capital firms TCV, Sequoia Capital, D1 Capital Partners and Valiant Capital Management and PepsiCo. Instacart’s offer follows chip designer Arm’s public offering last week, which was the biggest IPO this year.