CapWealth Chief Investment Officer Tim Pagliara discusses the impact of the August PPI, retail sales reports on the markets and the anticipated Federal Reserve meeting, as well as his outlook on oil and IPOs.
Shares of Instacart skyrocketed Tuesday on its IPO debut, marking the second successful, high-profile offering after Arm’s Wall Street launch.
Shares for the grocery delivery app rose over 30% in early trading, near $40 per share after pricing at $30. The company is trading on the Nasdaq under the ticker CART.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| CART | MAPLEBEAR INC | 36.78 | -5.22 | -12.43% |
INSTACART: WHAT TO KNOW ABOUT THE ONLINE GROCERY SERVICE
After announcing an original price range of $26 to $28 per share, the company on Friday boosted the range to $28 to $30 to meet demand. Instacart’s valuation is now around $14 billion.
Instacart controls about 22% of the $132 billion U.S. online grocery-delivery market, according to Evercore. (Tiffany Hagler-Geard/Bloomberg via Getty Images / Getty Images)
The IPO will net around $660 million, compared with the earlier target of $616 million. Despite the increased valuation, the total is just one-fourth of the $39 billion it was worth after its last funding round more than two years ago.
INSTACART RAISES IPO PRICE RANGE AFTER ARM’S STRONG WALL STREET DEBUT
Instacart is a mobile app that lets users grocery shop directly from their phone. (Davide Bonaldo/SOPA Images/LightRocket via Getty Images / Getty Images)
Instacart controls about 22% of the $132 billion U.S. online grocery-delivery market, according to Evercore. The company said it had 5.1 million users as of June 2023, up from 4.6 million in the year-ago period.
PepsiCo has also agreed to buy $175 million of the company’s preferred stock, while Goldman Sachs and JP Morgan are the lead underwriters for Instacart’s offering.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| PEP | PEPSICO INC. | 179.38 | -0.46 | -0.26% |
| GS | THE GOLDMAN SACHS GROUP INC. | 343.32 | +0.78 | +0.23% |
ARM SHARES CLIMB IN WALL STREET DEBUT
The deal, along with that of Arm Holdings, may help revive IPOs that have slowed due to inflationary pressures and the Federal Reserve’s 11 interest hikes since 2022. There were 181 deals in 2022, down from 1,035 in 2021, as tracked by Stock Analysis.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| ARM | ARM HOLDINGS PLC | 55.46 | -2.54 | -4.38% |
BIRKENSTOCK HEADS TO WALL STREET WITH IPO FILING
Threadneedle Ventures founder Ann Berry provides insight on IPOs on ‘Making Money.’