Blue Apron Goes Public On Thursday, But It's Not Looking Pretty

Blue Apron Goes Public On Thursday, But It's Not Looking Pretty”

Online meal-kit company Blue Apron Holdings slashed the expected pricing range for its initial public offering to between $10 and $11 per share from its previous expectation of $15 to $17 per share.

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 attractive product that looks like something cooked up by a professional. Altice USA, the stateside affiliate of Dutch telecoms company Altice, also announced plans to issue no-vote shares in its own listing, . "I think the Blue Apron lower valuation is due to increased concerns about Amazon and Whole Foods", Erik Kim, a venture capitalist, told MarketWatch, adding that both companies compete for urban, affluent customers.

Still, Blue Apron raised less money than it had originally hoped. And, at $1.9 billion, the company's market cap at the IPO price is less than the $2 billion valuation it fetched in its last round of private fundraising, according to Crunch Base. With the company still offering 30 million shares of Class A common stock in the IPO, the amount the meal-kit delivery company is expected to raise was reduced to up to $330 million from up to $510 million.

The New York company said that the 30 million shares in its IPO would be priced at $10 per share.

Blue Apron's IPO may have a broader impact, however, on similar meal delivery startups looking to go public. The company lost $52 million, swinging from a year-earlier profit of $3 million.

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Of the two companies, Delivery Hero has less to worry about for now because Whole Foods stores are primarily located in North America, with just nine in the United Kingdom.

It seems that Wall Street may not have much of an appetite for Blue Apron after all.

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. It will list its shares under the ticker symbol APRN.

The window is closing on Blue Apron's IPO. From inception through March 31, 2017, the company has delivered over 159 million meals to households across the United States, which represents about 25 million paid orders.

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