Blue Apron Slashes IPO Price As Big Investors Avoid A Sour Bite

Blue Apron Delivers Flat First Day on Stock Market

After opening at $10 - level with the IPO price set the day before - the company's shares reached a high of $10.65 before creeping back down.

Online meal-kit company Blue Apron Holdings slashed the expected pricing range for its initial public offering amid growing concerns about the potential impact from Amazon.com's deal to buy Whole Foods.

What curbed Blue Apron's financial appetite?

But, like most venture-backed companies at the time of their IPO, there are also losses.

CEO Matthew B. Salzberg was on CNBC just before the start of trading, telling host Carl Quintanilla and correspondent David Faber that Blue Apron is not scared of Amazon.Said Salzberg, anything Amazon can do to bring e-commerce habits to retail grocery is good for his company. The takeover sent grocery stocks tumbling.

As it stands, just 1.2 percent of that market is now online, according to a new report from Goodwater Capital, a consumer-tech focused venture capital firm.

As to when (and at what exact price) Main Street buyers will be able to take a bite out of the company, that remains to be seen.

Blue Apron sends boxes of pre-portioned ingredients and instructions for customers to cook meals at home. Whole Foods and Blue Apron target the same demographic, those with discretionary spending power and values-driven consumer behavior. In the three months ended March 31, 2016 and March 31, 2017, we generated $172.1 million and $244.8 million in net revenue, respectively, representing growth of 42%. The company will offer Class A shares of common stock with voting rights.

The unprofitable meal kit-delivery company, which touted its growth prospects to potential investors on its IPO roadshow, has leaned on its marketing strategy to build a customer base. Amazon bought Whole Foods. The structure will allow Blue Apron's management to grow the business in the public markets without having to worry about shareholder efforts to drive it into a sale.

Blue Apron had sought additional available credit before the initial public offering, according to people familiar with the matter.

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