US grocery delivery app Instacart on Friday (Sep 15) raised the proposed price range for its initial public offering (IPO), revising its terms to target a fully-diluted valuation of up to US$10 billion a day after a smooth debut from chip designer Arm Holdings.

The price hike signals robust investor demand for San Francisco-based Instacart, which is looking to finally list its shares this month after years of waiting in the wings.

Shares of SoftBank Group’s Arm, another major IPO contender that listed on Thursday, rose 3 per cent in pre-market trading on Friday after notching a 25 per cent gain on its first day of trading.

September is gearing up to be one of the busiest spells for new listings in recent memory. Shares of Neumora Therapeutics, another portfolio company of SoftBank, are set to start trading on Friday while marketing firm Klaviyo is also looking to list in the next few weeks.

Investors will be pinning hopes on robust debuts from Instacart, Klaviyo and Neumora to carry the momentum in the IPO market after Arm’s strong showing on Thursday.

Instacart said it is now seeking to sell 22 million shares at US$28 to US$30 each. It was earlier aiming to sell those shares priced between US$26 and US$28 each.

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At the top end of the range, the IPO will fetch US$660 million compared with the earlier target of US$616 million. The company’s raised valuation target, however, would still be just one-fourth of the US$39 billion it was worth after its last funding round more than two years ago.

Cornerstone investors have indicated they will buy up to US$400 million worth of shares in the IPO, which would account for around two-thirds of the total proceeds if they were priced at the top end of the range.

PepsiCo has also agreed to buy US$175 million of the company’s preferred stock.

Goldman Sachs and JP Morgan are the lead underwriters for Instacart’s offering. Reuters