Blue Apron forced to place IPO on diet

The planned Amazon-Whole Foods merger is spoiling Blue Apron’s big day.

The online meal-kit company took a butcher’s knife to its valuation on Wednesday when it repriced the 30 million common shares that will be sold in its upcoming initial public offering to $10 — down from its earlier expected range of $15 to $17.

Its new valuation, $1.9 billion, is a third smaller than the $3.2 billion total it sought in earlier regulatory filings.

The decline reflects investors’ concerns about Blue Apron’s future in a Amazon-Whole Foods world.

“With Amazon’s expertise in logistics and delivery, Whole Foods could wipe out Blue Apron and all of its peers if it wanted to,” said David Tawil of Maglan Capital, adding that Blue Apron and Whole Foods already have overlapping customer bases in urban and affluent areas.

Blue Apron’s high marketing costs have also been a concern for investors. Despite doubling its revenue to $795.4 million last year, the company still posted a net loss of $54.9 million as it poured money into logistics and marketing.

Founded in 2012, the Soho-based company delivers ingredients and recipes that allow customers to prepare meals at home. It’s among a fastgrowing segment that includes Hell- oFresh, Plated, Home Chef, Sun Basket and Chef ’d — all looking for more cash to expand their operations.

Green Chef, a player in the same industry, recently said it was looking to raise at least $50 million, after already having snagged $67 million.

Blue Apron has selected Goldman Sachs, Morgan Stanley, Citigroup and Barclays to launch its IPO.

The stock is scheduled to debut on Thursday on the New York Stock Exchange under the ticker APRN.