Grocery delivery company Instacart has increased the price range for its initial public offering (IPO) after witnessing the successful performance of chip designer Arm Holdings’ shares. The new offering price is set at $28 to $30 per share, up from the previous range of $26 to $28. With the inclusion of stock options and restricted stock units, Instacart’s valuation now stands between $9.3 billion and $9.9 billion, surpassing the earlier target of $8.6 billion to $9.3 billion.
This upward revision in price follows the strong demand for Arm’s shares during its debut on Thursday. Arm’s stock opened at $56.10 per share, a 10% increase from its IPO price, and closed at $63.59.
Instacart anticipates making its market debut next week, using the stock symbol “CART.” To support this venture, PepsiCo has committed to purchasing $175 million worth of Instacart’s Series A redeemable convertible preferred stock.
Instacart’s parent company, Maplebear, was established in 2012 and has since been eagerly awaiting its IPO. Investors believe that Instacart’s IPO, along with Arm’s offering, could signal a surge of similar IPOs in the near future.