Blue Apron Rises 7% from IPO Price to $10.70

Blue Apron's share price isn't the only casualty of the Amazon-Whole Foods deal. The company intends to list its shares on the New York Stock Exchange under the symbol APRN.

Wednesday's weak pricing shows still-private firms in need of cash that.

Some Blue Apron lovers who rely on the food delivery service to fuel their week are wondering when they can get a slice of this company ahead of its highly anticipated IPO. Another concern for investors is that Blue Apron has struggled to retain its customers and has spent heavily to try and keep them coming back.

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The New York company raised $300 million from the initial public offering, a smaller take than the $510 million it originally targeted.

The Amazon deal is especially pertinent to Blue Apron because its meal kits with fresh, high-end ingredients appeal to a similar customer base as Whole Foods: The top 10 percent of households by income, according to Kurt Jetta, chief executive officer of retail and consumer analytics provider Tabs Analytics. Blue Apron had lowered its price range Wednesday to $10 to $11 from its previously expected range of $15 to $17.

That was a jump from Blue Apron's April 2014 valuation of $500 million, alongside a $50 million funding round.

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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. The company had meant to price its 30 million shares between $15 and $17, but on Wednesday morning announced it would instead target a range of $10 to $11. The combination of the world's most powerful delivery logistics company with a major upscale grocery chain seems a likely guess.

Blue Apron intends to use the net proceeds from this offering to repay indebtedness, with the remainder going toward working capital and general corporate purposes.

Blue Apron's sales hit almost $800 million in 2016, more than doubling from the year before, according to its IPO paperwork.

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The company upped its marketing spend past year to $144 million, drawfing its 2015 spend, which was $51 million.


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