Blue Apron Slashes IPO Price 34% as Amazon-Whole Foods Looms

Updated on
  • Meal-kit company cut per-share price to up to $11 from $17
  • Shares are expected to price after the market closes Wednesday

How Amazon-Whole Foods Deal Could Impact Blue Apron

Blue Apron Holdings Inc. reduced the price range for its initial public offering by about a third to $10 to $11 a share as it works to convince investors to buy in to the meal-kit subscription service.

At the midpoint, that’s a 34 percent cut from the previously marketed stock price range of $15 to $17 a piece. The New York-based company will still sell 30 million shares, it said in a regulatory filing on Wednesday.

The shares are expected to price after the market closes on Wednesday. Blue Apron has had to combat the specter of a new food-delivery giant: a combined Amazon.com Inc. and Whole Foods Market Inc. On June 16, the e-commerce giant agreed to buy the health-food store, sending grocery stocks tumbling.

The high end of the new deal price range would give Blue Apron a market value of about $2.1 billion, based on the number of shares to be outstanding after the offering, and raise $330 million. That’s down from a value of $3.2 billion with an offering size $510 million.

Blue Apron’s listing is being led by Goldman Sachs Group Inc., Morgan Stanley, Citigroup Inc. and Barclays Plc.

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