Blue Apron to sell more shares after pandemic-fueled rise, stock price drops 10%

/ / News

Blue Apron Holdings Inc. announced Wednesday it would sell more shares after a pandemic-fueled gain in its previously woeful stock price, sending shares in the meal-kit-by-mail service down in after-hours trading. Blue Apron said it plans to sell at least 4 million shares at a yet-to-be-disclosed price, with all the proceeds going to the company. The book-running banks, Morgan Stanley and Cannacord Genuity, will have access to an additional 600,000 shares. Blue Apron went public three years ago at a price of $10 a share, but shares fell lower than $1 by the end of 2018 and forced the company to undergo a reverse stock split that briefly helped the stock price. Shares were back under $3 earlier this year before the COVID-19 pandemic, which has sparked interest in online services that can deliver food and other goods to homes. Blue Apron shares shot higher, gaining more than 175% in the past six months and closing Wednesday at $11.38. After announcing the fresh shares, the stock fell more than 10% in the extended session Wednesday.Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.