Instacart on Monday priced its initial public offering of stock at $30 a share, raising $660 million for the grocery delivery company.
San Francisco-based Instacart sold 22 million shares in the IPO. Trading of the company's stock is set to begin Tuesday on the Nasdaq $NDAQ stock exchange under the stock symbol “CART.”
The price was at the high end of an earlier range estimated by Instacart, reflecting a renewed confidence in tech stocks after last week's successful IPO of Arm Holdings, a U.K. chip designer.
The price gives Instacart a market value of around $10 billion. That's far lower than the $39 billion valuation the company announced in early 2021.
Instacart is the market leader among third-party grocery delivery companies, according to YipitData, a market research firm. But it faces growing competition from others, including DoorDash and Uber $UBER Eats. It also competes with big grocers like Walmart $WMT, which offer their own delivery.
Instacart provides delivery and pickup from 85% of U.S. grocers, or more than 80,000 stores, using a network of 600,000 freelance shoppers. It also provides in-store technology, like smart carts and electronic shelf tags, and sells online ads to food companies and retailers.
The company says it has 7.7 million active customers who spend about $317 per month on the platform.