The first thing to know about the Instacart initial public offering (IPO) – which technically begins Monday as high-net-worth individuals and institut
ional investors obtain their shares but begins trading on Tuesday – is that common opinion is calling this a quite reasonably-priced IPO.
Even though the firm raised its share price range last Friday by $2 to a range between $28 an $30 per share, the IPO seems undervalued by comparison to other digital or tech companies. Instacart earned $114 million in net income in the second quarter that ended in June. If we use that figure to drive a $456 million annual run rate, then Instacart is going to market at a Price-to-Earnings Ratio of less than 22.
Instacart is expected to raise between $616 million and $660 million after selling 22 million shares on Monday. This will value the firm somewhere between $9.3 billion and $9.9 billion. That valuation could look a little higher if the Wall Street book runners decide to purchase an additional 3.3 million shares over the following 30 days.IPO last week was oversubscribed somewhere around 10-to-1, it would be unsurprising if the price moved toward the top of the range on Monday or even higher.
Instacart was founded in San Francisco in 2012 and now works with 1,400 different retailers to deliver food via contract workers. Total order count grew from 223 million to 263 million between 2021 and 2022 but has flatlined in the first half of 2023 despite revenue growing. Instacart will trade under its parent company’s moniker – MapleBear – and debut under the ticker symbol CART.Information on these pages contains forward-looking statements that involve risks and uncertainties.
Malaysia Latest News, Malaysia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Fed decision, Instacart IPO and UAW strike top week aheadInvestors will be closely watching the Federal Reserve's decision on interest rates, as well as the ongoing UAW strike against Ford, GM and Stellantis in the coming week.
Read more »
Fed Meeting, Instacart IPO, and More to Watch This WeekThe FOMC is expected to hold interest rates steady on Wednesday. Plus Instacart will IPO on Tuesday and earnings from FedEx, Darden, and more.
Read more »
S&P 500 Forecast: Instacart IPO, Fed's September meeting dot the week's eventsThe S&P 500 sank for the second week in a row last week as the utility sector led the index by gaining 2.7%, while the information technology sector’s
Read more »
Instacart's biggest IPO twist: Tech trying to go public as a value stockInstacart is trying to go public as a value stock, carefully managed to get the best results from modest growth, a twist few would have predicted back in 2021.
Read more »
Instacart Has An Incredible Opportunity To Improve HealthcareThe company has incredible potential in improving food accessibility, nutrition security, and healthcare outcomes.
Read more »
Instacart IPO Debuts Tuesday. Will its Stock Pop or Plop?Confidence in the gig economy combined with the success of advertising will help decide the grocery-delivery company's future as it goes public.
Read more »