Instacart raises $660 million in its IPO

Grocery delivery company Instacart on Monday raised $660 million in its IPO, after pricing at the high end of its offering range.

Why it matters: The IPO market is finally heating up after two years on ice, and that could help refresh U.S. stock markets that have experienced a net loss of listed companies.

• Chip giant Arm went public last week, while marketing automation software provider Klaviyo is expected to begin trading this Wednesday.

Details: Instacart will begin trading tomorrow on the Nasdaq under ticker symbol "CART."

• The $30 per share price represents a $10.2 billion fully diluted valuation, with the company floating less than 10% of its shares.
• That's well below the $39 billion valuation it received in its last private round more than two years ago. It's also lower than a subsequent internal valuation reset.
• Instacart originally planned to price its shares at $26-$28, before boosting the range to $28-$30.
• In addition to the IPO proceeds, PepsiCo agreed to buy $175 million of preferred convertible stock in a concurrent transaction.

Financials: Instacart reports $242 million of net income on around $1.48 billion of revenue in the first half of 2023, with around one-third of its top-line coming from advertising.

Go deeper: Instacart's IPO is a big e-commerce test