Instacart’s initial public offering on Monday netted the company more than $420 million, according to a CNBC report. The IPO offering of 22 million shares was priced at $30 per share on Monday, but the stock (listed as CART on the Nasdaq exchange) hit the market midday at about $42 per share before eventually trailing downward in the afternoon.
As of late this morning, the stock is back to about $30 per share, which equates to a company value of about $10 billion.
“This IPO is not about raising money for us,” said CEO Fidji Simo in an interview with CNBC. “It’s really about making sure that all employees can have liquidity in stocks that they work very hard for. We weren’t looking for a perfect market window.”
According to a Supermarket News story, some analysts are cautious about Instacart stock, noting that profitable growth could be difficult to achieve as competitors seek a larger share of the grocery delivery market.
Instacart’s IPO prospectus reported net income of $242 million and revenue of $1.475 billion for the first six months of this year. Those figures are up from the same period a year ago when the company reported a net loss.
Instacart also said it filed 132.9 million orders in the first half of 2023, up from 132.2 million during the same period a year ago.