Instacart sold 22 million shares at $30 each in an initial public offering on Monday, raising $423 million in the process, as 7.9 million shares were sold by other selling stockholders. The offering, which values the grocery delivery company at around $10 billion, is the second high-profile IPO in a matter of days, after British chipmaker Arm had made its trading debut on the Nasdaq stock exchange last Thursday. With Klaviyo, a marketing automation company, also planning to raise up to $550 million in its initial public offering on Tuesday, this week is a clear sign of life from the U.S. IPO market, which had dried up completely in 2022 after a record-breaking 2021.
According to Dealogic data analysed by EY, IPO activity already picked up slightly in the first half of the year, as companies raised $10.1 billion in 63 initial public offerings in the U.S., compared to $4.7 billion in 51 IPOs in the first six months of 2022. That increase was largely driven by the Johnson & Johnson spinoff Kenvue, though, which raised $4.4 billion in its IPO in May. Going forward, EY expects IPO activity to pick up further, as many of the headwinds that caused the latest drought have begun to subside. With inflation looking likely to have peaked, rate hikes nearing an end and equities having rebounded from last year’s lows, the market backdrop looks more positive now that it did at any time in the past 18 months.