Instacart just priced its upcoming IPO at $26 and $28 a share

Instacart is in focus this morning after the online grocery company priced its upcoming initial public offering (IPO).

Instacart is looking for up to $9.3 billion valuation

The San Francisco-headquartered firm plans on selling 22 million shares in total at a price of $26 to $28. At that top end of that range, it will raise about $616 million.

Instacart wants to command a valuation of up to $9.3 billion, as per its updated filing with the Securities & Exchange Commission on Monday.

The stock market news arrives about a month after this delivery giant said its revenue went up 30% on a year-over-year basis in the first six months of 2023.

Note that Instacart has a footprint comprising more than 40,000 stores in over 5,500 cities across the U.S. and Canada.

Norway’s fund wants to be a cornerstone investor

Today’s filing also revealed Norges Bank Investment Management as interested in being a cornerstone investor in Instacart.

Together with Sequoia Capital, TCV, Valiant Capital, and D1 Capital Partners – the sovereign wealth fund of Norway wants to load up on $400 million worth of its shares. However:

Underwriters could sell more, fewer, or no shares to any of the cornerstone investors, and any of the cornerstone investors could determine to purchase more, fewer, or no shares in this offering.

PepsiCo – the multinational food and beverage behemoth had also agreed to buy $175 million of Instacart shares in a private placement in late August. The grocery delivery company sees Amazon and DoorDash as its competitors.