The forthcoming Blue Apron IPO will raise $100 million for the company and is set to test both Wall Street as a whole and specifically the technology start-up sector. In summary Blue Apron is a subscription-based meal kit delivery company and was the first of its kind in the US. The company has a private valuation of around $2 billion and is seeking to raise an additional $100 million. Even though the company is the leading subscription meal kit delivery company in the US there are many competitors biting at their heels. So, why might the Blue Apron IPO test Wall Street? Competitive market There are many competitors in the US and overseas who have very quickly realised that the USA is a prime market for subscription meal kit deliveries. The number of people who want to spend less time cooking and shopping has grown dramatically as the average working day continues to extend leaving less time for leisure activities. If you look back 20 or 30 years ago, many so-called experts believed that we would be working just a few hours a day with more leisure time and time with the family. So, how has that worked out? Read full article here
I've learned to wait a while before buying stocks after they IPO - preferably after any lockup period expires.
In many ways an initial IPO market could be seen as a "false market" as potential sellers are barred from selling and very often there is not a lot of loose stock. Always guarantees a good burst in the price and plenty of headlines, before the sellers hit town!
