Instacart, the online grocery delivery group preparing to list on the Nasdaq later this month, is looking to boost its IPO price following the successful debut of U.K.-based chipmaker ARM Holdings.
The Wall Street Journal reported late Thursday that Instacart is looking to list its shares at between $28 and $30 each, a $2 per share boost to its prior target range that would value the San Francisco-based group at around $10 billion.
Instacart is looking to sell around 22 million shares which, at the newly-reported level, would raise around $660 million. Around two-thirds of that total, however, is likely to come from so-called 'cornerstone' investors such as Norges Bank Investment Management, Sequoia Capital and D1 Capital Partners.
The reported changes follow a spectacular debut for ARM, which opened at $56.10 per share on the Nasdaq yesterday, after pricing at $51 per share the previous day, before surging nearly 25% to close at $63.59 each.
"It is worth noting that, many companies pre-IPO will price the shares lower to spark higher consumer demand - this could have been the strategy with Arm," said Brandie E Brackler, market analyst at Admirals. "It will be interesting to see the performance over the next week and whether or not the ARM share price maintains momentum, however typically and statistically, share prices drop after their IPO debut".
ARM Holdings shares were marked 5.7% higher in pre-market trading Friday to indicate an opening bell price of $67.00 each.
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