After Arm Holdings’ successful IPO, grocery delivery firm Instacart boosted its projected price range to $10 billion daily.
The price boost indicates strong investor demand for San Francisco-based Instacart, which plans to float its shares this month after years of waiting.
Another big IPO contender, SoftBank Group’s (9984.T) chip designer Arm, gained 34% in premarket trading on Friday after a 25% increase on Thursday.
September is shaping up to be a record-breaking month for new listings. Marketing business Klaviyo plans to list in the coming weeks, and SoftBank portfolio company Neumora Therapeutics will begin trading on Friday.
After Arm’s excellent Thursday showing, investors will hope Instacart, Klaviyo, and Neumora’s good debuts will lift the IPO market.
Instacart wants to sell 22 million shares at $28–$30 each. It had sought to sell such shares for $26–$28 each.
The top of the IPO range is $660 million, up from $616 million. Its revised valuation objective is only one-fourth of its $39 billion value from its last investment round over two years ago.
Cornerstone investors have said they will buy up to $400 million in IPO shares, accounting for two-thirds of the total profits if priced very high.
PepsiCo (PEP.O) will buy $175 million of its preferred stock. Instacart’s principal underwriters are Goldman Sachs and J.P. Morgan.