Instacart’s pending IPO has reportedly got a boost with its pricing in the wake of Thursday’s successful stock market float of ARM Holdings (NASDAQ:ARM).
Brokers handling the grocery delivery app maker are now able to tap into more positive sentiments, according to a Reuters report, thanks to ARM shares flying some 25% higher on its stock market debut.
The ARM success tells the investors, potentially, that the market is once again open for IPOs.
ARM has been hailed as a potential breakthrough, or at least an encouraging movement in a market that has effectively been closed for the best part of a year, amid market uncertainty due to higher inflation and interest rates.
Initially tipped to be a $70 billion IPO, ARM’s parent SoftBank ended on a $54.5 billion valuation, pricing the stock at $51 ahead of yesterday’s float.
ARM rose some 25% in its debut on Nasdaq before rising a further 4% today, to change hands at around $66.35.
Amid newfound investor enthusiasm, the Instacart IPO pricing is now pitched in a range between $28 to $30 per share, up from $26 to $28.
If confirmed at the higher range, the IPO would value Instacart near the $10 billion level and raise around $660 million of new capital for the app company.
Nevertheless, that still lags the $39 billion value penciled in by Instacart’s last funding round – which, mid-pandemic, tapped into the soaring prevailing demand for the app that allows home delivery of groceries and other food items from local outlets and convenience stores.
Elsewhere on Friday, RayzeBio also debuts on Nasdaq to seal the week’s other 10-figure IPO.
RayzeBio pocketed $311 million in the offering, selling a higher allocation of shares (17.3 million versus 14.4mln) at $18, as the IPO landed at the top-end of its $16 to $18 range.
It marked RayzeBio’s as the second largest IPO for a biotech company this year after Acelyrin raised $540 million in May.