Yahoo Finance Live anchors discuss Instacart’s planned IPO.

Video Transcript

- Sick guitar riff there. It is time for Cut For Time. Two stories. One minute on the clock for each. We start with this. Grocery delivery app Instacart not planning to raise much capital for its upcoming IPO and instead will focus on the sale of its employee shares, the "Wall Street Journal" is reporting. So this move would allow Instacart staff, including its earliest hires, to cash in on some shares that they have been accumulating and help Instacart retain its employees.

Now, we've seen even more of the strategies in how companies would go public or make their market debut, whether that be via SPAC, whether that be a traditional IPO, or even direct listing, which is the route that really gives the employees the opportunity to put some of their shares out there and cash in.

- Yeah. This is definitely a creative way. We have not seen many companies taking this flavor of IPO. So it's interesting to see them doing this, especially in this environment where they're focused on employee retention. Instacart of course, has had to retrench, like so many companies have, especially within technology. And we've seen a lot of IPO delays as well. So it's interesting to see them make this move to still try and make the IPO happen but in a very different way it feels like.

- So making it out the door.

-Yeah.