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· Blue Apron Aims to Raise as Much as $587 Million in U.S. IPO
· Amazon just dealt a blow to Blue Apron's IPO plans
Blue Apron Aims to Raise as Much as $587 Million in U.S. IPO
Meal-kit delivery company to offer shares at $15 to $17 each
Busy food market set to get more crowded on Whole Foods sale
by Phil Serafino and Alex Barinka, Bloomberg
June 19, 2017
Meal-kit delivery company Blue Apron Holdings Inc. plans to raise as much as $586.5 million in its initial public offering to help it compete in the increasingly crowded marketplace for on-demand food.
The company will market 30 million shares at $15 to $17 each, Blue Apron said in a regulatory filing on Monday. The sale can be increased to 34.5 million shares if there’s enough demand, which would boost the IPO to $586.5 million, according to the filing.
Blue Apron filed for the IPO on June 1 without disclosing the size of the sale, after reportedly delaying listing preparations while it worked to improve financials. While revenue more than doubled last year, Blue Apron is still losing money as it fights to win customers from competitors.
Founded in 2012 in Long Island City, Queens, Blue Apron sends weekly boxes of pre-portioned ingredients with instructions for customers to cook meals at home. Rival Sun Basket, which recently sold a stake to Unilever’s venture arm, hired Bank of America Corp. and Jefferies Group LLC to lead its own IPO.
Blue Apron’s listing is being lead by Goldman Sachs Group Inc., Morgan Stanley, Citigroup Inc. and Barclays Plc
Marketing Costs ...
Amazon just dealt a blow to Blue Apron's IPO plans
Blue Apron has posted steeper net losses each year since 2014, according to regulatory filings.
Sixty-seven percent of sales were in fresh foods, Whole Foods said in May.
Food delivery is already a fiercely competitive and fraught space.
Anita Balakrishnan, CNBC
16 Jun 2017
Amazon announced an agreement to buy Whole Foods on Friday, a blockbuster deal that sank stocks across the grocery industry.
The acquisition comes just two weeks after meal-kit delivery start-up Blue Apron filed for a $100 million IPO.
New York-based Blue Apron — valued at about $2 billion in the private market, according to CBInsights — would be a highly anticipated unicorn IPO. But the company already faced serious challenges, even before Amazon's Whole Foods takeover.
For starters, Blue Apron has posted steeper net losses each year since 2014, according to regulatory filings. An expose by BuzzFeed News last fall highlighted extreme stress in Blue Apron's packing facilities, where logistics were reportedly a struggle.
"I would get sent to Whole Foods and buy things if we really needed an ingredient and we didn't have it in the building," a former team lead told BuzzFeed. ("We are proud of our corporate culture and the good work that our employees do every day, bringing families across the country together over delicious, home-cooked meals," the company told BuzzFeed at that time.)
Indeed, filings show that one of Blue Apron's distinguishing features is the delivery of farm-fresh items — an area where Whole Foods also excels. Sixty-seven percent of sales were in fresh foods, Whole Foods said in May.
Two years ago, Blue Apron raised $135 million in funding...
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