German meal kit delivery group HelloFresh, a competitor to U.S. firm Blue Apron, announced plans to list on Tuesday in a flotation that could value the company launched by Rocket Internet at up to 1.5 billion euros ($1.8 billion).
HelloFresh's biggest market is the United States where it has been spending heavily on discount offers and TV and radio advertising to compete with rivals such as Blue Apron and Plated.
Blue Apron joined the stock market in New York in June but its valuation has halved due to rising costs, declining customer numbers and the threat of competition from Amazon.
The HelloFresh announcement is a boost for German ecommerce investor Rocket Internet, which owns a 53 percent stake. Rocket also invested in takeaway firm Delivery Hero, which has seen its shares rise by a quarter since it listed in Frankfurt in June.
Rocket Internet shares were up 0.9 percent, having hit their highest level in almost five months. Rocket pledged in 2015 to list two companies in the following 18 months.
HelloFresh is planning to sell new shares worth up to 300 million euros, which would give the new investors a 20 percent stake in the company, according to a person close to the deal, implying a valuation of up to 1.5 billion euros for the company.
That is below the 2 billion euro valuation put on the company last December when it raised funds from asset manager Baillie Gifford and Qatar's sovereign wealth fund.
HelloFresh, which increased its number of active customers to 1.3 million in the second quarter, said it would use the proceeds to fund growth as it seeks to make its service more personalized and add more choice, like wine and desserts.