Meal-kit delivery company Blue Apron just had its debut in the market on Thursday, trading on the New York Stock Exchange under the symbol “APRN.”
The company hovered around its IPO $10 share price for most of the morning. With 30 million shares offered, the IPO price means $300 million raised for the company. The $10 share prices values the company at about $1.89 billion.
Initially Blue Apron had intended on a $15 to $17 IPO range, but with Amazon’s acquisition news about Whole Foods, and the potential impact it could have, the company then lowered their IPO to $10.
“We’re tackling a huge market, and we’re focused on the long term, quite frankly,” CEO Matthew Salzberg told CNBC’s “Squawk on the Street.
“The stock price today, whether it’s up, down, left or right, is really just the beginning of this new chapter in our company’s life.”
According to Salzberg, the money raised from the IPO will go into investing in automation and supply chain technology, as well as expansions into meal kits that cater to more specific occasions and dietary need.
“This wasn’t a special moment where we needed to go public right now,” Salzberg admitted. “Since … the very first day, we wanted to be the kind of company that could be a public company. The kind of caliber of company that’s going after a big enough opportunity, with a long enough orientation, and ambitious enough business plan.”
Blue Apron i the first food delivery business start up to have an IPO.
Disclaimer: We have no position in Blue Apron (NYSE: APRN) and have not been compensated for this article.