Blue Apron is set to go public on the New York Stock Exchange under the symbol «APRN» amid an increasingly competitive meal-kit space
Blue Apron has priced its initial public offering at $10 per share, according to a person familiar with the matter.
With an offering of 30 million shares, the company is looking to raise about $300 million in its IPO.
On Wednesday morning, the company slashed its IPO range in an amended filing. The company said it now expects to price between $10 and $11 a share, down from its original estimate of $15 to $17 a share.
The move was unusual as only 4 percent of internet IPOs have revised their range downward since 2010, according to Dealogic.
Blue Apron is set to go public on the New York Stock Exchange under the symbol «APRN» amid an increasingly competitive meal-kit space.
Amazon, for example, is preparing to acquire Whole Foods for $13.7 billion. The internet retail giant has previously tested food delivery and meal kits.
Another concern for investors is the high cost of customer acquisition. Delivery services like Blue Apron typically offer discounts and deals to attract new customers. Funding those efforts can be costly if the service cannot convert trials into subscriptions.
Despite rapid growth, Blue Apron has never turned a profit. Last year, the company doubled its revenue, but posted a net loss of $54.9 million as it invested in logistics and marketing.
— Reporting by CNBC’s Leslie Picker. Lauren Thomas and Christine Wang contributed to this report.
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