Drop Instacart a new The S-1 was filed on Monday, indicating for the first time the proposed price range for the IPO. The company intends to sell its shares in its debut for between $26 and $28 per share.
Since 22 million shares will be sold in the company’s debut under its current plans, the company could sell up to $616 million of its shares in the IPO. However, this pile of capital will not be put into the company’s accounts, as only 14.1 million shares will come from Instacart itself, plus another 7.9 million shares from existing shareholders.
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There’s also a $3.3 million stock option, $175 million Series A convertible preferred stock with Pepsi in the mix, and more nuances when it comes to the number of fully diluted Instacart shares.
It all boils down to a simple pro forma valuation range of $7.2 billion to $7.8 billion, and a fully diluted market cap of $8.6 billion to $9.3 billion, according to our calculations. Renaissance Capital itself Math ran It found that in the middle of the IPO target price range and using the fully diluted share count, Instacart is valued at about $9.1 billion.
Now that we have some solid numbers to play with, let’s take a look at what those top-level metrics mean for the American unicorn and former decacorn.
Is $9.3 billion a lot for Instacart?
Compared to the final private market price set in 2021, no. It’s about $30 billion short of that mark. But since every big-name tech company we can think of has lowered its valuation since those heady days, it’s not worth considering Instacart’s special discount.