Marley Spoon makes ASX debut
Meal kit delivery company Marley Spoon made its ASX debut on Monday, with the price of shares in the Germany-based business closing 16 per cent down from its offer price of $1.42 at $1.195.
Marley Spoon chief executive Fabian Siegel told the AFR the company should not be judged on one day’s performance and said he expects to see “distortions” in the share price during the first year as investors learn how to value the company.
Currently the second biggest player in the local meal kit market after HelloFresh, Marley Spoon has been expanding its reach into new regions in Australia and reportedly reaches 65 per cent of the population.
The majority of funds raised through the $70 million initial public offering have been earmarked to support the continued growth of its customer base, as Marley Spoon looks to grab a bigger slice of the highly competitive meal kit market.
New players have been popping up to meet the rising demand for fresh, healthy, convenient food options, including US-based Blue Apron, which listed on the New York Stock Exchange in June, with a valuation of US$1.9 billion, and Germany-based HelloFresh, which listed on the Frankfurt Stock Exchange in November, with a valuation of €1.7 billion.
While Marley Spoon is a fraction of the size, it is banking on choice and flexibility as the path to growth, having launched a new line of affordable meal kits under the Dinnerly brand earlier this year.
Marley Spoon managing director for Australia Rolf Weber previously told Internet Retailing the business is on track to become profitable in Australia, Marley Spoon’s biggest market, in the second half of this financial year.
While Marley Spoon is active in six markets around the world, including Australia, Germany, Austria, Belgium, the Netherlands and the US, it generates 37 per cent of total revenue Down Under, where one third of the workforce is based.