Can investors muster up an appetite for more meal kits? Following Blue Apron’s disappointing IPO, competitor HelloFresh has announced it too is going public, Reuters reports.
HelloFresh, which is based in Germany, will be listed on the Frankfurt Stock Exchange and hopes to raise $350 million from its IPO, according to the New York Times. The meal kit company operates in 10 countries, including in the U.S., and says it will use money raised from going public “to make its service more personalized and add more choice, such as wine and desserts,” per Reuters.
The company has told investors it will soon overtake Blue Apron as the top meal kit company in the U.S., Bloomberg reports, and that it expects to become profitable within the next 15 months.
Since Blue Apron’s stock debuted in June, its stock price has plummeted: Following its initial offer price of $10 per share, it’s currently trading at $5.16, and some investors have filed suit against the company claiming they were misled about Blue Apron’s potential for profitability.
Hello Fresh seems to think it can succeed where Blue Apron has faltered, though: “Our margins and our outlook on profitability are quite different,” HelloFresh CEO Dominik Richter told Reuters. “We are gaining a lot of market share in the United States. That is why we assume our listing will turn out differently.”
• Meal Box Firm HelloFresh Puts $1.8 Billion Flotation on Menu [Reuters]
• HelloFresh, the Meal Delivery Service, Pursues I.P.O. in Germany [NY Times]
• Blue Apron Is Being Sued Over Its Terrible Stock Market Performance [E]