By Matthew Lynley.
Blue Apron — the next big consumer IPO for 2017 — isn’t looking as good as it was just a few weeks ago.
The company said in an updated filing with the Securities and Exchange Commission that it would cut its IPO price range target to between $10 and $11 per share, down from between $15 and $17 per share. Normally these price ranges move around, but this is a pretty significant haircut for a company that looked like it was having a better 2017 aside from heavy burn on marketing and growth.
If the company priced at $10 it would put its valuation just under $2 billion (including the option for underwriters to purchase additional shares, or the “greenshoe”). That was Blue Apron’s valuation in 2015 when it raised $135 million in a venture financing round. Sometimes this is a set up for an IPO pop the next day — investors and the companies like to see around a 20 percent bounce or so — but it still means that the reaction from investors may have been more tepid than expected.
Read more at Techcrunch.