Instacart reveals 31% revenue jump in road to long-awaited IPO
By Niket Nishant
(Reuters) -Grocery delivery app Instacart on Friday revealed a 31% jump in revenue for the first half of 2023, inching closer to a much-anticipated initial public offering in what is shaping up to be a busy spell for new listings.
The development comes days after SoftBank (TYO:9984) Group-backed chip designer Arm Holdings made public its IPO filing. Both the companies are expected to be a litmus test of investors' appetite for IPOs, and could encourage other startups to list their shares.
«We are in a bit of a holding pattern right now given the recent pullback in the broader markets, the traditional end-of-summer deal hiatus, and the considerable attention being paid to the large IPOs expected in September,» said Mark Schwartz, IPO and SPAC (special purpose acquisition company) advisory leader at EY.
«Issuers that are considering the Fall IPO on-ramp will be monitoring the reception of these larger deals, as well as the general market tone and emerging economic data, to make their go/no-go decisions.»
If successful, listings by Arm, Instacart and Klaviyo, which also disclosed its IPO paperwork on Friday, could revitalize the U.S. IPO market, which has already seen some green shoots this year on bets that the Fed could guide the economy to a «soft landing.»
Excluding special purpose acquisition companies (SPACs), $10.3 billion has been raised via 77 IPOs so far this year, nearly double the amount in the same period in 2022, according to data from Dealogic.
«I think we're going to see more companies kick off their (IPO) process in 2024, which is when a healthy IPO market will return,» said Mike Bellin, IPO services leader at PricewaterhouseCoopers U.S.
Instacart's public filing comes 15 months after the
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