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Shares of online clothing retailer Poshmark rose more than 130% in the company’s debut on the market Thursday.
The stock traded at $ 97.50 a share. Poshmark priced its stock market at $ 42 a share on Wednesday, giving it an initial valuation of more than $ 3 billion.
The company said earlier that it was expected to sell between $ 35 and $ 39. It was valued at nearly $ 600 million in its final round, a Series D in November 2017.
Poshmark, founded in 2011, is an internet market for second-hand clothing shoes and accessories. Like eBay and Etsy, Poshmark connects buyers with sellers, who regularly list items from their own closet. Poshmark makes money by reducing every transaction.
The company is launched at a time when the IPO market is heating up in 2021. The payment company Affirm shot up almost 100% on Wednesday. Pet retailer Petco Health and Wellness and online gaming company Playtika will also be announced on Thursday.
Poshmark applied to announce in December. In its IPO prospectus, Poshmark said it has benefited from a flood of demand generated by the coronavirus because the store that sits at home still goes to online retailers for essential and non-essential goods. The market serves as a source of additional revenue for Poshmark’s 4.5 million sellers, the company said.
Poshmark generated $ 192.8 million in revenue in the first three quarters of 2020, up 28% from the same period last year, according to the S-1. The company also revealed that it made a profit of $ 20.9 million in that period after losing $ 33.9 million a year ago.
The company now has 6.2 million active buyers and 31.7 million active users, most of whom are female and either millennials or Gen Z. It names Amazon, eBay, Etsy, Facebook, Shopify, TJ Maxx and Walmart among its competitors .
Morgan Stanley and Goldman Sachs lead the offer.