- Poshmark seller Tiffany Wood now has a $ 12,000 nest egg because he bought shares in the company’s initial public offering.
- Poshmark has reserved 330,000 shares in the IPO for super users, according to the S1 submission.
- In a leaked email to Insider, Wood shared details about how Poshmark allowed her to buy into the stock market.
- Visit Business Insider’s homepage for more stories.
Tiffany Wood, 30, has been a Poshmark seller since December 2015 and spends an average of about 30 minutes a day on site.
Thanks to Thursday’s spectacular IPO, Wood and her husband are also one of the Poshmark users earning money from the shares.
Wood told Insider she was buying 149 shares at $ 42 a share, the initial share price. Poshmark opened at $ 96.50 on Thursday, meaning its stock rose $ 14,378 on the first day. She did not sell immediately and by the close of Friday, shares were trading at $ 83.20. Her stake is still worth $ 12,397 with a healthy profit of $ 6,139. And she’s excited.
Poshmark sets 150 as the maximum amount of shares available to top users.
In a leaked email to Insider, Wood shared details about how Poshmark allowed her to buy into the stock market.
“Poshmark sets aside a percentage of the shares in the IPO for a Directed Share Program (” DSP “). The DSP allows Poshmark to invite eligible POSH ambassadors and certain ‘friends and family’ to participate assume the IPO and Poshmark shares for sale at the IPO price, subject to the minimum and maximum purchase amounts, according to a screenshot of the email that Insider saw.
The email also instructed participants to open a Fidelity investment account to sell the shares.
Poshmark defines ambassadors as users who make at least 15 sales, have at least 50 available listings in their closet, and have an average rating of at least 4.5 stars. In total, according to the S1 submission, Poshmark reserved 330 000 A shares in the IPO for these super users at the initial public price. To qualify, users must also reside in the United States and have made at least one platform sale between January 1, 2020 and December 2, 2020.
About 4,000 Poshmark users were able to participate and become shareholders, according to a Bloomberg report. A Poshmark spokeswoman said she could not confirm the number and that she could not share more information about the program.
Read more: Poshmark’s three earliest investors have just earned billions from the spectacular stock market. They explain how CEO Manish Chandra convinced them to invest.
In addition to selling at Poshmark, Wood is also a special education teacher in Brooklyn, New York. She told Insider that she plans to use some of the stock market money to buy materials for her classroom and items for her baby when she sells. “If there’s money left, I need a new laptop, too,” she told Insider.
Poshmark is not the first technology company to offer users to buy shares in the stock market. In December, Airbnb also set aside up to 3.5 million non-voting shares for hosts, accounting for about 7% of the total offering.
“I’m so proud that there will be thousands of community shareholders if we become a public company,” Poshmark CEO Manish Chandra told Insider.
Read now: INTERVIEW: Poshmark CEO Manish Chandra works with Serena Williams, avoids jail time through a partnership with the USPS and uses Balenciaga sneakers.