Instacart Inc. is reportedly strategizing to launch its initial public offering (IPO) as early as September, as indicated by individuals with knowledge of the situation. This move would contribute to a potential recovery in the realm of US stock offerings.
According to these undisclosed sources, the leading US-based online grocery delivery company is considering the possibility of publicly disclosing its IPO intentions by submitting the required documents to the US Securities and Exchange Commission (SEC) as early as the upcoming week. These insiders, who wished to remain anonymous due to the sensitive nature of the information, shared that Instacart, previously contemplating a direct listing, is currently planning to pursue a traditional IPO on the Nasdaq stock exchange.
Representatives from Instacart, headquartered in San Francisco, chose not to provide any comments on the matter.
In its forthcoming IPO filing, Instacart is expected to unveil fresh insights into its financial performance and operational activities. The preliminary document is anticipated to present only a preliminary framework for the terms of the offering, with the company expected to provide more specific details regarding the size and price of the shares in subsequent submissions.
Last year, Instacart revealed that it had discreetly submitted its IPO plans to the SEC. At that time, Bloomberg News reported that the company was collaborating with financial institutions such as Goldman Sachs Group Inc. and JPMorgan Chase & Co.
Due to the downturn in the market for new public offerings, Instacart opted to postpone its IPO aspirations. In an internal memo to the staff in October, CEO Fidji Simo acknowledged the challenging market conditions, deeming it highly improbable to proceed with an IPO that year, according to Bloomberg News.
This decision followed Instacart’s downward revision of its internal valuation, first from about $24 billion to approximately $13 billion.
Having accumulated $2.74 billion in funding since its startup phase, Instacart’s valuation reached $39 billion in 2021, as indicated by data provider PitchBook. Prominent investors, including Tiger Global Management, Coatue Management, and D1 Capital Partners, have contributed to its funding rounds.
In the current year, a total of 109 companies have collectively raised $14 billion through IPOs on US exchanges. This contrasts sharply with the previous year, 2021, which set a record with 745 listings raising $241 billion by this point.
(Source: Reuters)
