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This decision follows the successful debut of SoftBank-backed Arm Holdings (NASDAQ:ARM), which saw a 25% gain on its first day of trading.
Instacart is now planning to offer 22 million shares at a price range of $28 to $30 per share, up from its earlier target of selling shares priced between $26 and $28 each.
This adjustment in the IPO price range reflects the company’s confidence in achieving a higher valuation in the market.
“As IPOs test the waters again, Instacart’s listing range of $26-28 per share looks reasonable and even a little conservative to us,” Bernstein analysts wrote in a client note today.
“A key assumption, no doubt — particularly with increasing competition and significant deceleration YTD. Nonetheless, online grocery is still a growth vertical and the advertising business carries a promise of higher margins down the road.”
Bernstein’s analysis points to valuation based on the range of $28-32 per share.
