Instacart (NASDAQ:CART), the San Francisco-based grocery delivery service, has set its initial public offering (IPO) share price at $30, the upper limit of its anticipated range.
The Nasdaq listing has raised $660 million in fresh capital and values the company at $9.9 billion, a sharp drop from its $39 billion price tag at the height of the tech boom in 2021. The stock starts trading later Tuesday under the ticker CART.
The IPO comes amid a challenging year for public offerings, the worst since 2009.
However, the floodgates appeared to have been opened by Arm Holdings' successful US stock market debut with a host of other tech players reportedly queuing to follow the chipmaker, including Instacart (NASDAQ:CART).
Instacart (NASDAQ:CART), founded in 2012, has navigated the gig economy by diversifying into advertising and software tools.
Under CEO Fidji Simo, who took the helm in 2021, the company reported $2.5 billion in revenue last year, a 39% increase from the previous year, and a net profit of $428 million.
Despite this, the company has faced challenges, including slowed growth in 2021 after an initial pandemic-driven surge.
Investment interest in the IPO was strong, with firms such as Sequoia Capital and D1 Capital expressing intent to buy $400 million of Instacart's shares.
Instacart co-founder Apoorva Mehta's 11% stake is now worth $869 million.