The healthy meal-kit startup is looking to raise up to €311m to expand its business
HelloFresh, the meal-kit startup backed by Rocket Internet, is targeting a market valuation of as much as €1.5bn (£1.3 bn) in an initial public offering this week, the company said in a statement Sunday.
The company, which sells meal kits in 10 markets and remains unprofitable, set a price range of €9 to €11.50 a share. It’s looking to raise €243m to €311m to invest in expanding its business. The shares are expected to start trading in Frankfurt on 2 November.
HelloFresh chief executive Dominik Richter said the company wanted to “become the clear No 1 player on the US market in 2018.” The company, which has about 1.3 million active customers, is seeking to break even within the next 15 months, he said.
- Read more
Meituan Dianping: Little-known Chinese tech startup valued at $30bn
The IPO will test investor appetite for food-delivery businesses just as Amazon’s purchase of Whole Foods threatens to upend the industry.
Rival Blue Apron, whose value has dropped by about half since its June public offering, cut 6 per cent of its workforce this week. Amazon itself has filed a trademark application for prepared food kits, and grocery chain Albertsons paid about $200m to buy meal-kit delivery company Plated.
HelloFresh has told investors that it will overtake Blue Apron in the US by the third or fourth quarter, according to an investor presentation seen by Bloomberg News.
HelloFresh generated sales of $167m in the US in the second quarter, up from $140m in the first three months of the year.
“We have huge momentum in the US market and are poised to overtake our biggest competitor in the near term,” HelloFresh wrote in its presentation for potential IPO investors. “We have out-executed Blue Apron across all dimensions.”
Business news: in pictures
Business news: in pictures
Spotify traded publically for the first time on the New York Stock Exchange on Tuesday. However, the company isn't issuing shares, but rather, shares held by Spotify's private investors will be sold
The deadline to award a contract to make blue British passports after Brexit has been extended by two weeks following a request by bidder De La Rue. The move comes after anger at the announcement British passports would be produced by Franco-Dutch firm Gemalto when De La Rue’s contract ends in July. The British firm said Gemalto was chosen only because it undercut the competition, but the UK company also admitted that it was not the cheapest choice in the tendering process.
Phillip Rasmussen, finance chief of technology company IQE, was killed in an accident while on holiday over the weekend. The company confirmed the 47 year old man had died while cycling in Menorca. A 25-year-old American man was arrested on suspicion of drink driving, after failing a roadside breath test.
The Beast from the East wiped £4m off of Flybe’s revenues due to flight cancellations, airport closures and delays, according to the budget airline’s estimates. Flybe said it cancelled 994 flights in the three months to 31 March, compared to 372 in the same period last year.
HelloFresh had planned an IPO in 2015, after a funding round that valued it at €2.6bn, but shelved the stock sale amid concerns about investor demand and valuation in a volatile market, people familiar with the matter said at the time.
HelloFresh assembles ingredients into boxed meal kits and seeks to convince customers of the benefits of cooking at home.
Deutsche Bank, JPMorgan, Morgan Stanley, Berenberg and BNP Paribas are lead managers on the IPO.