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Shares of online clothing retailer Poshmark jumped more than 130% in the company’s market debut on Thursday.
The stock started trading at $ 97.50 per share. Shares. On Wednesday, Poshmark priced its IPO at $ 42 per share. Stock, giving it an initial valuation of more than $ 3 billion.
The company previously said it expected to sell shares between $ 35 and $ 39. It was valued at nearly $ 600 million in its final round, a Series D in November 201
Poshmark, founded in 2011, is an online marketplace for used footwear and accessories. Like eBay and Etsy, Poshmark connects buyers with sellers who often display items from their own closet. Poshmark makes money by taking a slice of every transaction.
The company will be public at a time when the IPO market in 2021 is heating up. The payment company Affirm rose almost 100% in its debut on the market on Wednesday. Pet supply retailer Petco Health and Wellness and online gaming company Playtika are also scheduled to be announced Thursday.
Poshmark filed for publication in December. In its IPO prospectus, Poshmark said it has benefited from a flood of coronavirus-generated demand as fast-at-home customers continue to turn to online retailers for important and non-essential goods. The marketplace has served as a source of additional revenue for Poshmark’s 4.5 million salespeople, the company said.
Poshmark brought in $ 192.8 million in revenue in the first three quarters of 2020, an increase of 28% from the same period last year, according to S-1. The company also revealed that it made a profit of $ 20.9 million over this stretch after losing $ 33.9 million a year ago.
The company now counts 6.2 million active buyers and 31.7 million active users, the majority of whom are women and either millennials or Gen Z. It shows Amazon, eBay, Etsy, Facebook, Shopify, TJ Maxx and Walmart among its competitors.
Morgan Stanley and Goldman Sachs are leading the offering.