Instacart, the San Francisco-based delivery service, has announced the pricing of its Initial Public Offering (IPO) at $30 per share, demonstrating strong investor interest in new offerings. The company sold 22 million shares at this price, which falls within the expected range of $28 to $30. As a result, Instacart has garnered a valuation of $9.9 billion. Trading of the company’s shares on the Nasdaq commenced on Tuesday.
Instacart’s IPO has been highly anticipated, following the recent listing of chip designer Arm Holdings. These offerings are expected to bring life back to the IPO market, which has been lackluster for most of the year. Additionally, Klaviyo, a marketing software company, is also poised to go public this week.
Although Arm initially experienced strong demand for its shares, with a 10% increase in opening price, enthusiasm has since waned. The stock closed down 4.5% on both Friday and Monday.
The future performance of Instacart’s shares will hinge on investors’ confidence in the expansion and profitability of the gig economy. Founded in 2012, Instacart, also known as Maplebear, primarily delivers groceries to homes through the assistance of contractors. Last year, approximately 25% of the company’s revenue came from Instacart Ads, a service where retailers pay for sponsored ads shown to customers.