Instacart's IPO surges as the grocery delivery company goes from the supermarket to the stock market
Instacart’s shares are surging in the grocery delivery company’s stock market debut
Instacart delivered in its stock market debut.
The grocery delivery company's shares surged around 30% shortly after they started trading Tuesday on the Nasdaq stock exchange under the ticker symbol “CART.”
At Instacart's San Francisco headquarters, CEO Fidji Simo and other executives celebrated the IPO by ringing a bell shaped like the company's carrot logo. Around 1,000 employees attended, the company said.
The IPO is a long-awaited step for Instacart, which was founded in 2012. The company filed privately for an IPO in May 2022 but delayed those plans last fall when the markets were roiling due to recession fears. There were just 71 IPOs in the U.S. last year, the lowest number since 2009, according to Renaissance Capital.
But a resurgent market is seeing more IPO activity this year. Last week, shares of U.K. chip maker Arm Holdings rose almost 25% in their stock market debut on the Nasdaq, the largest IPO in nearly two years.
Joe Endoso, President at Linqto, an investment platform, said a successful listing by Instacart could prod others __ especially tech companies __ to consider IPOs in the coming months.
“The global financial markets are buzzing with optimism for a potential resurgence in the IPO market,” he said.
Instacart raised $660 million in its initial public offering, selling 22 million shares at $30 apiece. The pricing of the IPO gave Instacart a market value of around $10 billion, significantly lower than the $39 billion value placed on it after a fund-raising round in 2021.
Instacart provides delivery and pickup from 85% of U.S. grocers, or more than 80,000 stores, using a network of 600,000 freelance shoppers. It also
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