The initial public offering (IPO) market is bracing for five new deals this week, with tech unicorns Instacart and Klaviyo leading the pack. This marks the first entrance of tech unicorns, companies valued at over $1 billion, into the market in nearly two years.
Instacart, a grocery delivery platform, is aiming to raise up to $660 million through the sale of 22 million shares priced between $28 to $30 each. This would place the company's valuation at an impressive $8.3 billion. As of Monday, Instacart holds approximately 22% of the $132 billion U.S. online grocery-delivery market and expects an increased shift towards online purchases of household essentials in the future.
Meanwhile, digital marketing firm Klaviyo plans to offer 19.2 million shares priced between $27 and $29 each, potentially raising up to $556.8 million. The company's valuation could reach $7.3 billion with Goldman Sachs, Morgan Stanley, and Citigroup (NYSE:C) serving as lead underwriters for Klaviyo's IPO.
In addition to these tech giants, three other companies are preparing for their IPOs this week. Gamer Pakistan hopes to raise $8 million with a market cap of $115 million; Xjet, an Israeli 3-D printing firm targets $6 million at a market cap of $77 million; and Global Mofy Metaverse, a Chinese tech company aims for $6 million at a market cap of $130 million.
Last week saw five IPOs collectively raise $5.4 billion, led by Arm Holdings (NASDAQ:ARM) which raised $4.9 billion at a market cap of $52.9 billion. However, Arm's stock fell 7.6% on Monday following a bearish rating from Bernstein.
The renowned German footwear manufacturer Birkenstock also announced its plans to join the IPO pipeline last week, although the terms have not yet been set. Renaissance Capital predicts that Birkenstock is expected to raise about $850 million.
In 2021, the Renaissance IPO ETF recorded a 34% gain, outperforming the S&P 500 which increased by 16%.
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