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Shares of online clothing retailer Poshmark jumped over 130% in the company’s debut on the market on Thursday.
The shares began trading at $ 97.50 per share. On Wednesday, Poshmark estimated its IPO at $ 42 per share, giving it an initial valuation of more than $ 3 billion.
Earlier, the company said it expected to sell shares for between $ 35 and $ 39. In its last round, the D Series in November 201
Poshmark, founded in 2011, is an online marketplace for second-hand shoes and clothing accessories. Like eBay and Etsy, Poshmark connects buyers with sellers who often list items from their own closet. Poshmark makes money by cutting off every transaction.
The company went public at a time when the IPO market in 2021 is heating up. The payment company Affirm jumped almost 100% on its market debut on Wednesday. Pet retailer Petco Health and Wellness and online gaming company Playtika are also due to go public on Thursday.
Poshmark applied for public release in December. In its IPO prospectus, Poshmark states that it has taken advantage of the demand flow generated by the coronavirus as other home buyers continue to turn to online retailers for basic and non-essential goods. The market serves as a source of additional income for 4.5 million Poshmark sellers, the company said.
Poshmark generated revenue of $ 192.8 million in the first three quarters of 2020, an increase of 28% over the same period last year, according to its S-1. The company also revealed that it made a profit of 20.9 million dollars for this section, after losing 33.9 million dollars a year ago.
The company now has 6.2 million active buyers and 31.7 million active users, most of whom 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 are leaders in supply.