Blue Apron prices IPO at $15-$17 per share to raise $500M

Blue Apron prices IPO at $15-$17 per share to raise $500M

Blue Apron provides every ingredient for dinner, down to the herbs and spices.

Founded in 2012, New York City-based Blue Apron delivers seasonal ingredients and continually changing original recipes that customers use to cook meals at home. The company offers two delivery options, a two-person meal plan and a family plan, starting at $8.99 per serving. The small meal-kit box, containing fixings for three meals for two people, costs $59.94. Blue Apron sells wine that can be paired with the meals.

The company says its business model is based on eliminating middlemen and giving customers specialty ingredients, "many of which are not widely available and are exclusive to us." From Blue Apron's start through March 31, the company has delivered more than 159 million meals to U.S households, representing roughly 25 million paid orders, the company said.

Blue Apron markets its offerings via television, digital and social media, direct mail, radio and podcasts. The cost of those efforts totaled $144.1 million in 2016 and will probably increase, it said.

Its revenue has been growing, up from $77.8 million in 2014 to $795.4 million last year. But losses are also mounting. Blue Apron posted a $30.8 million net loss in 2014 and a $54.9 million loss last year.

"We have a history of losses, and we may be unable to achieve or sustain profitability," the filing cautioned.

After the IPO is completed, founder and CEO Matthew Salzberg will own about 29.7% of the company's voting stock.

Follow USA TODAY reporter Roger Yu on Twitter @ByRogerYu.



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