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Rafael Henrique | LightRocket | Getty Images
Shares of online clothing retailer Poshmark increased by more than 130% in the company’s market debut Thursday.
The stock started trading at $ 97.50 per share. On Wednesday, Poshmark valued its IPO at $ 42 a share, which brought it an initial value of over $ 3 billion.
The company previously said it plans to sell shares between $ 35 and $ 39. It was valued at nearly $ 600 million in its last round, a Series D in November 2017.
Poshmark, founded in 2011, is an Internet marketplace for used footwear and clothing accessories. Like eBay and Etsy, Poshmark connects buyers with sellers, who often list items from their own closet. Poshmark earns money by taking a share of every trade.
The company goes public at a time when the IPO market of 2021 is heating up. Payment firm Affirm soared almost 100% when it debuted on the market on Wednesday. Pet supply retailer Petco Health and Wellness and online games company Playtika are also expected to go public on Thursday.
Poshmark filed for publication in December. In its IPO prospectus, Poshmark said it had benefited from a surge in demand generated by the coronavirus, as buyers stranded at home continue to turn to online retailers for essential and non-essential goods. The market has served as an additional source of income for Poshmark’s 4.5 million sellers, the company said.
Poshmark generated revenue of $ 192.8 million in the first three quarters of 2020, an increase of 28% from the same period last year, according to its S-1. The company also revealed that it made a profit of $ 20.9 million over this period, having lost $ 33.9 million a year ago.
The company now has 6.2 million active buyers and 31.7 million active users, the majority of which are women and millennials or Gen Z. It lists Amazon, eBay, Etsy, Facebook, Shopify, TJ Maxx and Walmart among its competitors.
Morgan Stanley and Goldman Sachs lead the offer.
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