Instacart: Putting a Price on the IPO Share Valuation

Name: Instacart: Putting a Price on the IPO Share Valuation (English version)
SKU: W36955

Lisa Kaplowitz, Sunanda Saravanakumar, Kishan Dalal, Rashmi Kapse, Jonathan Pinto

Product #:W36955

Supplier:Ivey

Discipline:Entrepreneurship, Finance

Setting:United States, 2023

Details:Case (PDF) • 10 pages • 2024-06-12

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Instacart is an online grocery delivery platform that is seeking to go public through an initial public offering (IPO). Instacart has hired an investment bank to be its lead bookrunner, and the bank is responsible for coming up with an IPO price range. Maya Martinez, an investment banking analyst at the firm, has been tasked with building financial models to come up with an appropriate share range for the firm’s managing directors to present at the IPO roadshow.

Learning Objectives

The goal of this case is to teach students the fundamentals of discounted cash flow (DCF) and comparable companies analyses in the context of an IPO. Both of these analyses are used to derive implied share prices, from which the students will create an offering price range for Instacart’s IPO.

Instacart: Putting a Price on the IPO Share Valuation

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Learning Objectives