Instacart Inc. is planning an initial public offering as soon as September, according to people familiar with the matter, adding to a potential rebound for US listings.
The largest US online grocery-delivery company could publicly file its plans for an IPO with the US Securities and Exchange Commission as soon as next week, said the people, who asked not to be identified because the information was private. Instacart, which had previously considered a direct listing, is planning a traditional IPO on the Nasdaq, the people said.
A listing by San Francisco-based Instacart would add momentum to an IPO market that has been warming in fits and starts. Chipmaker Arm Ltd., majority owned by SoftBank Group Corp., is planning to go public in September and raise $8 billion to $10 billion in what would be the year’s biggest IPO.
Marketing and data automation provider Klaviyo, also could make its financials public as soon as next week and list its shares in September, according to a person familiar with that matter. A representative for Boston-based Klaviyo declined to comment, as did a spokesperson for Instacart.
So far this year, only $14 billion has been raised in IPOs on US exchanges, down from $241 billion at this point in the record-setting 2021 IPO year, according to data compiled by Bloomberg.
In its upcoming filing, Instacart will disclose new details of its finances and operations. The document will likely include only a placeholder for the terms of its offering, with the company specifying the proposed size and price of the share sale in later filings.
Instacart said last year that it had filed confidentially with the SEC to go public. Bloomberg News reported at the time that the company was working with banks including Goldman Sachs Group Inc. and JPMorgan Chase & Co. At the same time, the company was making moves to consolidate and expand its share of the online grocery delivery market.
As the market for new listings soured, Instacart decided to delay its plans. In October, Chief Executive Officer Fidji Simo wrote in a memo to staff that “extremely tumultuous” markets made it “highly unlikely” that an IPO would be possible that year, Bloomberg News reported at the time.
That had followed Instacart slashing its internal valuation to about $13 billion after reducing it earlier in the year to $24 billion.
Instacart has raised $2.74 billion as a startup and was valued in 2021 at $39 billion, according to data provider PitchBook. Its long list of investors includes firms such as Tiger Global Management, Coatue Management and D1 Capital Partners, according to PitchBook.
(Updates with Klaviyo IPO plan in fourth paragraph.)
