2 months ago • 2 mins
What’s going on here?
Instacart’s initial public offering (IPO) delivered a fresh new boost to a debut-hungry market this week.
What does this mean?
US stock markets had been in something of a listing drought before chip designer Arm had its outing last week. And, now, just like buses, they seem to be coming all at once, with Instacart tossed into the mix just a few days later. The grocery delivery startup’s listing roughly followed Arm’s recipe, with a bunch of big supporters – PepsiCo and Sequoia Capital among them – on hand to support the debut, and a share price that was set to simmer, not boil. It all made for the second big IPO serving in the space of a week, with pandemic-popular Instacart raising almost $700 million. And that’s just set the table for more – data automation provider Klaviyo is set to start trading this week, and the German socks-and-sandals trend-bucking brand Birkenstock is also stepping up plans.
Why should I care?
For markets: Fresh pickings.
With two strong, back-to-back debuts in the bag, we might soon see a bumper crop of companies planning their own floats. And with the way investors devoured Instacart’s shares, this market might appear particularly appetizing to other venture-backed startups. Just don’t go thinking this is a new golden era for stock debuts: with these two IPOs, the amount raised on US exchanges might have drawn level with what was raised by this time last year, but it’s still less than 10% of the amount from the same period in record-setting 2021.
Zooming out: Super market sweep.
Still, any uptick in listings action is a welcome improvement for US exchanges, which are known to fiercely compete for them – and the fees they generate. So far this year, the tech-driven Nasdaq has managed to shove its cart out ahead of the New York Stock Exchange’s, having snagged both Arm and Instacart’s big openings.
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