Blue Apron shares hovered near their IPO price in their first moments of trading on Thursday, rising about 9 percent.
The meal-kit delivery start-up made its trading debut on the New York Stock Exchange under the symbol “APRN” on Thursday morning.
The company priced its IPO at $10 a share, the low end of the expected range of between $10 and $11 per share. With an offering of 30 million shares, the company is looking to raise about $300 million in its IPO.
Amid growing concerns over the impact of tech giant Amazon‘s pending acquisition of Whole Foods Market, the company lowered its expected IPO range on Wednesday, down from the $15 to $17 range it had initially forecast.
The move was unusual, as only 4 percent of internet IPOs have revised their range downward since 2010, according to Dealogic.
“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” on Thursday. “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.”
The proceeds 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 needs, Salzberg said.
The company’s revenue has exploded in the past few years, growing from $77.8 million in 2014 to $795.4 million in 2016. Over a 3-year period, Blue Apron generates $900 to $1,000 per average customer, Salzberg said.
“The unit economics for what we do are really incredible and very strong,” Salzberg said.
At $10 a share, the IPO should value the company around $1.89 billion.
The unicorn start-up was valued around $2 billion in the private market, according to CB Insights estimates. Major investors include Fidelity, Bessemer Venture Partners, and First Round Capital. The company’s…