Instacart on Monday said it plans to offer 22 million shares at an estimated price of $26 to $28 per share with lead underwriters Goldman Sachs and JPMorgan in a bid to raise about $594 million in its upcoming initial public offering.
The IPO adds the grocery-delivery name to an uptick in activity of late in the U.S. new-issues market, with U.K. chip maker Arm Holdings expected to trade this week and marketing-automation-software company Klaviyo Inc. also setting its IPO terms on Monday.
Including the overallotments stock provided to the underwriters, Instagram will have about 331 million shares outstanding, giving it a market capitalization of about $8.9 billion, based on an IPO price at the midpoint of the proposed range.
In an earlier filing, Instacart said it will have about 279.33 million shares outstanding.
Instacart plans to trade on the Nasdaq under the symbol CART.
The company, which is formally called Maplebear Inc., reported net income attributable to common stockholders of $27 million and revenue of $1.48 billion in the six months ending June 30, compared with a loss of $74 million and revenue of $1.13 billion in the year-ago period.
Breaking out $220 million in undistributed earnings attributable to preferred stockholders in the first six months of 2023 and other items, the company would have earned $242 million during the time period.
Instacart is an online shopping app that allows customers to order food and other products from local grocery stores.
As part of the IPO, PepsiCo Inc.
has agreed to buy $175 million worth of Instacart’s stock.
Principal shareholders Norges Bank Investment Management, along with entities affiliated with TCV, Sequoia Capital, D1 Capital Partners LP and Valiant Capital Management, plan to purchase up to approximately $400 million at the IPO per-share price and on the same terms as the other purchasers in this offering, according to a filing.
Editor’s note: This story has been updated to reflect Aug. 15 figures for total shares outstanding.
Also read: Instacart IPO: 5 things to know about the app that’s looking to ride a ‘massive digital transformation’ in grocery shopping