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Instacart shares fall further below IPO price

Published 09/27/2023, 01:04 PM
Updated 09/27/2023, 01:06 PM
© Reuters. FILE PHOTO: Instacart employee Eric Cohn, 34, navigates a Safeway grocery store while preparing a delivery order while wearing a respirator mask to help protect himself and slow the spread of the coronavirus disease (COVID-19) in Tucson, Arizona, U.S., Ap

By Noel Randewich

(Reuters) - Instacart's stock dropped 4% on Wednesday, marking a fresh low a day after it closed for the first time under the price in the grocery delivery platform's high-profile initial public offering.

Shares of Instacart, formally called Maplebear, last traded at $28.71 compared to the $30 price set in its IPO on Sept. 18.

Retail investors bought almost $12 million worth of Instacart shares in the company's first trading session, and net purchases have steadily declined since then, amounting on Wednesday to about $100,000, according to Vanda (NASDAQ:VNDA) Research, which tracks retail trades.

SoftBank-backed chip designer Arm Holdings (NASDAQ:ARM) fell 2.5% to $52.19, just above the $51 price in its IPO two weeks ago.

After closing with a gain of 12% in its first session, Instacart has steadily lost ground.

Arm's shares have also mostly declined after surging in their Wall Street debut, touching intra-day lows below $51 in three of the past five sessions.

Arm's and Instacart's recent listings have coincided with a drop in Wall Street's main benchmarks as investors worry that the Fed could keep interest rates higher for longer than previously expected.

© Reuters. FILE PHOTO: Instacart employee Eric Cohn, 34, navigates a Safeway grocery store while preparing a delivery order while wearing a respirator mask to help protect himself and slow the spread of the coronavirus disease (COVID-19) in Tucson, Arizona, U.S., April 4, 2020. Picture taken April 4, 2020.  REUTERS/Cheney Orr/File Photo

Their lackluster performances since their market debuts add to doubts about whether a hoped-for revival in IPOs will materialize after a drought of more than 18 months.

Meanwhile, shares of Klaviyo, which debuted a week ago, climbed 0.6% to $34.32 on Wednesday. The marketing automation firm's stock remains above its $30 IPO price, but well below its intraday high of $37 in its first day of trading.

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