Instacart Slashes IPO Valuation to $9.3 Billion.
September 11, 2023: Instacart, the grocery delivery service, has slashed its IPO valuation to $9.3 billion, down from the $39 billion valuation it sought just a few months ago. The company is now expected to price its shares between $16 and $18 per share, down from the $22 to $24 per share range it had initially targeted.
The steep decline in Instacart’s valuation indicates the challenging market conditions for tech IPOs. Investors are increasingly wary of investing in high-growth companies that are yet to be profitable. Instacart is still losing money and is still being determined when it will become profitable.
The ongoing labor dispute with its shoppers overshadows the company’s IPO. Instacart shoppers are demanding higher pay and better working conditions. The dispute has led to protests and walkouts, and how it will be resolved is unclear.
Here are some actional and practical takeaways from the article:
- The market for tech IPOs is tough right now.
- Investors are wary of investing in high-growth companies that are yet to be profitable.
- Instacart is still losing money, and it is unclear when it will become profitable.
- Instacart is facing a labor dispute with its shoppers.
Here are some additional details about Instacart’s IPO:
- The company is expected to price its IPO on June 28, 2023.
- Instacart is offering 35 million shares of its common stock.
- Goldman Sachs and Morgan Stanley are leading the company’s IPO.
How to invest in Instacart’s IPO:
- You can invest in Instacart’s IPO by opening an account with a brokerage firm participating in the offering.
- You must deposit money into your account and place a buy order for Instacart shares.
- The shares are expected to start trading on the Nasdaq stock exchange under the “ICART.”