Instacart Receives Warm Reception on Wall Street Debut
Shares of Instacart (CART) are expected to have a successful debut on Wall Street, with early indications suggesting that the grocery delivery app's stock will open approximately 30% higher than its initial public offering (IPO) price. While trading may not commence immediately, the Nasdaq has already indicated that the first trade could be around $39.00 per share, compared to the IPO price of $30.00 per share, according to FactSet data.
If the stock opens at this price, Instacart, officially known as Maplebear Inc., would have a market valuation of approximately $13.2 billion. This valuation is based on the assumption that there are 338.8 million common shares outstanding (as-converted, fully diluted).
It is worth noting that in a recent high-profile IPO of semiconductor-design company Arm Holdings PLC, the stock's (ARM) first trade was 10% above the IPO price. However, by the end of the first day, it closed at a remarkable 24.7% above the IPO price.
Instacart's promising debut underscores the growing demand for convenient grocery delivery services and demonstrates investors' confidence in the company's potential for success in the market.
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