Blue Apron, Struggling to Woo Investors, Lowers Price Range for IPO
Blue Apron Holdings Inc. is struggling to win over investors in its initial public offering, and now expects to sell shares at a lower price than originally targeted.
A weak pricing of a well-known startup would be a disappointing development for the IPO market, which after a dismal 2016 has been on the rebound in the first half of 2017.
Blue Apron filed early Wednesday to lower the expected price range for its shares to $10 to $11 apiece, below the $15 to $17 it sought earlier, according to regulatory filings.
Peter Lee, a data scientist at Triton Research LLC, which analyzes pre-IPO companies, said that Blue Apron will likely impress some investors with its consistent revenue growth, but it’s unclear how it will transform into a company with strong profit margins given the complexity of food distribution and lack of customer loyalty.
Read full article on The Wall Street Journal - HERE