Instacart on Monday said it plans to offer 22 million shares at an estimated price of $26 to $28 a share with lead underwriters Goldman Sachs and J.P. Morgan in a bid to raise about $594 million in its upcoming initial public offering.
The IPO adds its name to an uptick in activity of late in the U.S. new issues market, with U.K. chip maker Arm Holdings expected to trade this week and marketing automation software company Klaviyo Inc. also setting its IPO terms on Monday.
Including the overallotments stock provided to the underwriters, Instacart will have about 279.33 million shares outstanding, giving it a market capitalization of about $7.5 billion, based on an IPO price at the midpoint of the proposed range.
Instacart plans to trade on the Nasdaq under the symbol CART.
The company, which is formally called Maplebear Inc., reported net income of $27 million and revenue of $1.48 billion in the six months ended June 30, compared to a loss of $74 million and revenue of $1.13 billion in the year-ago period.
Instacart is an online shopping app that allows customers to order food and other products from the local grocery store.
As part of the IPO, PepsiCo Inc. PEP, -0.07% has agreed to buy $175 million in stock in Instacart.
Principal shareholders Norges Bank Investment Management — and entities affiliated with TCV, Sequoia Capital, D1 Capital Partners L.P. and Valiant Capital Management — plan to purchase up to approximately $400 million in the IPO at the initial public offering price per share and on the same terms as the other purchasers in this offering, according to a filing.