Grocery delivery company Instacart raised the proposed price range for its initial public offering (IPO) Friday after chip company Arm Holdings had a strong debut this week.

By revising its terms to target a fully diluted valuation of up to $10 billion, Instacart is signaling strong investor demand for the IPO. Instacart is now seeking to raise as much as $660 million, offering 22 million shares for $28 to $30 per share. Previously, the 澳洲幸运5官方开奖结果体彩网:indicated range had been $26 to $2🍬8 for a target of $616 million.

Instacart's IPO is long-awaited and the company is looking to t♑ake advantage of an IPO market that is warming up. Chip designer Arm's Thursday IPO was the largest in the U.S. since 2021. Shares of the SoftBank-owned company rose 澳洲幸运5官方开奖结果体彩网:25% on the first day of trading, which likely fueled Instacart's valuation increase.

Despite that, the largest grocery delivery company in the U.S. is seeking a valuation of billions of dollars less than what it was worth a few years back. In 2021, the company was valued at $39 billion, but a more recently challenging climate for online delivery has dragged its worth down.

Instacart has recently started generating a profit. In the first half of 2023, its profit was $242 million, swinging from a loss of $74 million the previous year.

Among investors interested in Instacart's listing, which will trade under the ticker "CART," is 澳洲幸运5官方开奖结果体彩网:PepsiCo Inc., which will buy $175 million of its 澳洲幸运5官方开奖结果体彩网:preferred stock. If the shares are priced at the top end of the range, cornerstone investors that have committed to purchasing up to $400 million worth of stock will generate about two-thirds of the total proceeds, according to a Reuters report.

Other IPOs in the wings are Neumora Therapeutics Inc., another portfolio company of SoftBank, and marketing firm Klaviyo Inc. German footwear maker 澳洲幸运5官方开奖结果体彩网:Birkenstock Group BV also plans to offer shares in the U.S. in the next few weeks. Investors hope the new listings will perpetuate Arm's robust momentum.