Grocery delivery app instagram is likely to postpone its planned 2022 IPO amid market uncertainty that has left investors worried about rising capital market volatility, two sources familiar with the plan told Reuters.
Technology Initial Public Offering The global market is in the midst of its worst drought in nearly two decades. WE listings have brought in just over $7 billion so far this year, according to Dealogic data. Traditional IPOs, excluding ad hoc acquisition companies, raised a record $154 billion last year.
Instacart hasn’t completely ruled out the option of going public, a source said, but added that the company’s 2022 listing plans look extremely unlikely.
Instacart declined to comment on its IPO plans when contacted by Reuters.
The pandemic darling has laid off staff, slowed hiring and cut other expenses, information reported last month, adding that the company had laid off a few workers from its workforce of more than 3,000.
IPO plans
Based in San Francisco food delivery The company, which was aiming for a fourth-quarter listing, had planned to reveal its IPO filing in the coming days, the source said, but plans are now on hold due to market turmoil.
It comes at a time when financial market investors are avoiding IPOs and equity markets are bleeding in anticipation of further aggressive U.S. interest rate hikes to rein in inflation.
In May, Instacart said it had filed confidentially with the US securities regulator to go public.
Sources previously told Reuters that Instacart was considering going public either through a direct listing or a traditional IPO.
In direct listing, no shares are sold in anticipation, as is the case with IPOs. It also allows insiders to sell their shares immediately rather than being restricted for months, as is the case with IPOs.
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