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- Poshmark saleswoman Tiffany Wood now has a nest egg of $ 12,000 because she bought shares when the company went public.
- Poshmark has reserved 330,000 shares in the IPO for super users, according to the S1 filing.
- In a leaked email to Insider, Wood shared details about how Poshmark allowed him to participate in the IPO.
- Visit the Business Insider homepage for more stories.
Tiffany Wood, 30, has been a Poshmark salesperson since December 2015, spending an average of around 30 minutes per day on the site.
Thanks to Thursday’s spectacular IPO, Wood and her husband are also among Poshmark users making money from the stock.
Wood told Insider that she bought 149 shares at $ 42 a share, the original share price. Poshmark opened at $ 96.50 on Thursday, meaning its stock rose $ 14,378 on day one. She did not sell immediately and at the market close on Friday the shares were trading at $ 83.20. His stake is still worth $ 12,397 with a healthy profit of $ 6,139. And she is delighted.
Poshmark has set 150 as the maximum number of shares available to primary users.
In a leaked email to Insider, Wood shared details about how Poshmark allowed him to participate in the IPO.
“Poshmark sets aside a percentage of shares from the IPO for a direct share program (“ DSP ”). The DSP allows Poshmark to invite eligible POSH Ambassadors and certain “friends and family” to participate in the IPO and purchase Poshmark shares at the IPO Price, subject to minimum and maximum amounts stock purchase, ”according to a screenshot of the email seen by Insider.
The email also asked attendees to open a Fidelity investment account to administer the sale of shares.
Poshmark defines Ambassadors as users who make at least 15 sales, have at least 50 ads available in their closet, and have an average rating of at least 4.5 stars. In total, Poshmark reserved 330,000 Class A shares at the IPO for these super users at the initial public offering price, according to the S1 filing. To qualify, users must also reside in the United States and have made at least one sale on the platform between January 1, 2020 and December 2, 2020.
About 4,000 Poshmark users were able to participate and become shareholders, according to a Bloomberg News report. A spokeswoman for Poshmark said she was unable to confirm this number and could not share additional details about the program.
Read more: Poshmark’s top three investors just made billions from its spectacular IPO. They explain how CEO Manish Chandra convinced them to invest.
In addition to selling on Poshmark, Wood is also a specialist education teacher in Brooklyn, New York. She told Insider that when she sells, she plans to use some of the IPO money to buy materials for her classroom and items for her baby. “If there’s any money left, I also really need a new laptop,” she told Insider.
Poshmark isn’t the first tech company to offer users the option to buy shares on the IPO. In December, Airbnb also set aside up to 3.5 million non-voting shares for hosts, representing about 7% of the total supply.
“I am so proud that there will be thousands of shareholders in the community as we become a public company,” said Manish Chandra, CEO of Poshmark.
Now read: INTERVIEW: Poshmark CEO Manish Chandra talks about working with Serena Williams, avoiding jail by partnering with the USPS, and splurging on Balenciaga sneakers.
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