Blue Apron Prices IPO

Jun 30, 2017, 00:44
Blue Apron Prices IPO

Blue Apron's share price isn't the only casualty of the Amazon-Whole Foods deal. But a new SEC filing shows the company now plans to sell shares at $10 to $11 each.

Late previous year, Blue Apron put its IPO plans on hold while it focused on improving financials, people familiar with the matter said in December.

Though the startup has captured the hearts and wallets of millennials who want fancy meals but lack the time to shop and plan, it hasn't all been smooth sailing for Blue Apron.

For a trendy startup, an initial public offering is supposed to be a neat, pre-packaged experience: by following a simple set of instructions, you end up with a lovely product that looks like something cooked up by a professional.

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However, Amazon.com's $13.7 billion deal to buy Whole Foods Market Inc has left potential investors anxious about the prospects of the meal-kit industry. Blue Apron is still planning to offer 30 million shares but the new price tag brings the company's market value down by about $1 billion, as Bloomberg notes.

Blue Apron (APRN) is serving up a dish that big-money investors have turned away, causing the company to lower the price of its initial public offering by about 34%.

Blue Apron's price cut was the second-biggest decrease in a marketed price range for USA -listed IPOs in the past five years, according to data compiled by Bloomberg.

The reaction to Blue Apron's financials has been mixed.

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Among Blue Apron's rivals are HelloFresh and Plated, which ship boxes to customer's doorsteps with all the raw ingredients needed to make home-cooked meals.

Blue Apron will be one of the first of the so-called subscription services to go public, a watershed moment for the industry. Those customers have been ordering fewer, cheaper meal kits. The company said it had more than 1 million customers at the end of March. Blue Apron planned to raise $480 million, now cut to $315 million.

In 2014, 2015, and 2016, we generated $77.8 million, $340.8 million, and $795.4 million in net revenue, respectively, representing growth of 338% from 2014 to 2015 and growth of 133% from 2015 to 2016.

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