Shares in meal delivery business Marley Spoon (ASX: MMM) closed at $1.27 today after listing at $1.42, with around $250,000 of the stock traded. The IPO is noticeable as investors are actually buying chess depositary instruments that represent a 1/1,000th interest in shares in the German parent company that raised $70 million from local investors to grow its market share Down Under.
Marley Spoon boasts of its subscription-based model meaning it could be classed as takeaway-as-a-service in that customers receive healthy meals that are ready to cook every week or more regularly. However, it's yet to post a profit and exists in the fiercely competitive sector of online food delivery.
In financial year 2018 it's forecasting a net loss of EUR32.3 million on revenue of EUR93 million as it invests for growth via marketing expenses, online promotions and more staff.
It only started up in 2014 and as such has a limited trading history, which means it remains a speculative bet I'd be inclined to avoid for now.
