Instacart shares jump 12% on Nasdaq debut

The news: Shares in San Francisco-based grocery delivery app Instacart have posted a solid jump on their Nasdaq debut, a day after its IPO was priced at the top end of its range.

The numbers: Instacart shares soared as much as 43% in intra-day trade after debuting on the Nasdaq on Tuesday, but closed 12.3% higher at USD33.70 each. The IPO was priced at USD30 per share, raising USD660 million ($1.03 billion) in the offering.

The context: Instacart’s listing follows the spectacular debut by Softbank-owned chip designer Arm last week, after what was the biggest IPO this year. Investors believe the strong investor interest could encourage other startups to test the waters and potentially revive the IPO market after a near 18-month dry spell, albeit at lower valuations than during the pandemic.