Mastering the art of home cooking
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US-based meal kit company, Blue Apron, celebrated its IPO on 29 June with more than the usual fanfare, hiring caterers to pass out bite-size chicken burgers and hosting a cooking competition outside the New York Stock Exchange.
But just over one week later, the company’s stock was trading 24 per cent down from its debut price of US$10, at about US$7.60 a share. Investors in Blue Apron, which listed with a market cap of US$1.9 billion, well below its initial target of US$3 billion, have revealed a wariness about the challenges that lie ahead.
Questions & Answers
Q.What was Blue Apron's initial target market capitalisation for its listing?
What was Blue Apron's initial target market capitalisation for its listing?
Blue Apron's initial target market capitalisation for its listing was US$3 billion. However, it listed with a market cap of US$1.9 billion, significantly below this target.
Q.What does the article suggest about investor sentiment regarding Blue Apron?
What does the article suggest about investor sentiment regarding Blue Apron?
The article suggests investors are wary about the challenges Blue Apron faces. This is evidenced by the significant drop in stock price and the market cap being well below the initial target.
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