Maplebear Inc., which is doing business as Instacart, debuted on Wall Street with a bang Tuesday, as the grocery-delivery app’s stock opened 40% above where its initial public offering priced.
The company said late Monday that its IPO of 22 million shares priced at $30 a share, which was at the top of the expected range, to value the company at roughly $10 billion.
The stock’s CART, +26.09% first trade on the Nasdaq was at $42.00 at 12:49 p.m. Eastern for 2.59 million shares. At that price, the company would be valued at $14.2 billion, based on 338.8 million as-converted, fully diluted shares outstanding after the IPO.
The stock has pulled back slightly since its open, and was last trading 26.9% above the IPO price.
Instacart’s debut comes about a week after another high-profile IPO was also cheered at its open. The first trade in Arm Holdings PLC’s stock ARM, -4.54% last Thursday was 10% above its IPO price, and it continued to draw interest as it closed its first day 24.7% above the IPO price.
However, interest has waned since then, with Arms stock shedding more than 12% over the past three sessions.
Also read: IPO market braces for first tech unicorns in nearly two years.
Instacart went public at a time that investor interest in IPOs has eased relative to interest in the broader stock market. The Renaissance IPO ETF IPO, -1.54% has lost 0.8% over the past three months while the S&P 500 SPX, -0.35% has gained 0.5%.
This article was originally published by Marketwatch.com. Read the original article here.
