HelloFresh, a meal-kit delivery service, is preparing an IPO.
Here’s what investors need to know about the possible HelloFresh IPO.
- The company is planning to sell shares worth up to 300 million euros.
- This would have new investors in the company obtaining a 20% stake.
- It could also give the company a valuation of up to 1.5 billion euros.
- HelloFresh says that it plans to use money from the IPO to grow its business.
- This includes adding more customization and options for customers.
- The meal-kit company says that it plans to stop incurring EBITDA losses in 2019.
- To achieve this goal, it will focus on lowering market costs per customer.
- The HelloFresh IPO will have Berenberg, BNP Paribas, Deutsche Bank, JP Morgan and Morgan Stanley working as joint coordinators.
- It was previously looking to make an IPO back in 2015, but the value was too high to entice investors.
- There are also still some concerns about an IPO following the failure of rival Blue Apron Holdings Inc’s (NYSE:APRN) IPO earlier this year.
“Our margins and our outlook on profitability are quite different. We are gaining a lot of market share in the United States,” Dominik Richter, the CEO of HelloFresh, told Reuters while talking about the APRN IPO. “That is why we assume our listing will turn out differently.”
Blue Apron isn’t just dealing with poor reception to its IPO. It is also facing multiple lawsuits that claim it has been misleading investors since the launch of its IPO in July. These lawsuits came to light in August, but many were still seeking plaintiffs before moving forward.
APRN stock is down 48% since its IPO.
As of this writing, William White did not hold a position in any of the aforementioned securities.