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Instacart Pulls IPO on Volatile Market Conditions – Sources

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Instacart Pulls IPO on Volatile Market Conditions - Sources

(CTN News) – According to two sources familiar with the matter, the grocery delivery app Instacart plans to postpone its listing plans in 2022 due to market uncertainty that has led investors to worry about the rising volatility of capital markets, according to two sources familiar with the matter.

It is fair to say that the IPO market in the technology sector is experiencing its worst drought in nearly two decades.

Listed companies in the US have raised over $7 billion so far this year, according to Dealogic. A record $154 billion was raised last year in traditional IPOs, excluding special purpose acquisition companies.

The company hasn’t completely ruled out the possibility that it might go public, a source said, but added that the plans to go public in 2022 appear to be highly unlikely for several reasons.

Instacart declined to comment on its IPO plans when contacted by Reuters.

As The Information reported last month, the pandemic darling has been letting go of staff, slowing hiring, and cutting costs.

Despite the market turmoil, the San Francisco-based food delivery company is now halting its plans to announce its IPO filing in the coming days.

Capital market investors are shunning IPOs, and equity markets are bleeding in anticipation of more aggressive interest rate hikes by the U.S.

Instacart filed a confidential filing with the U.S. Securities and Exchange Commission in May.

Instacart is considering going public through a direct listing or an IPO, and sources told Reuters.

In a direct listing, no shares are sold in advance like in an IPO. Plus, insiders can sell their shares immediately instead of being restricted for months.

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Arsi Mughal is a staff writer at CTN News, delivering insightful and engaging content on a wide range of topics. With a knack for clear and concise writing, he crafts articles that resonate with readers. Arsi's pieces are well-researched, informative, and presented in a straightforward manner, making complex subjects accessible to a broad audience. His writing style strikes the perfect balance between professionalism and casual approachability, ensuring an enjoyable reading experience.

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