- Poshmark’s seller, Tiffany Wood, now has a $ 12,000 income because she bought shares in the company’s initial public offering.
- Poshmark reserved 330,000 shares in the IPO for superusers, according to document S1.
- In a leaked email to Insider, Wood shared details of how Poshmark allowed it to buy the IPO.
- Visit the Business Insider home page for more stories.
Tiffany Wood, 30, has been a Poshmark salesperson since December 2015, spending an average of about 30 minutes a day on the site.
Thanks to Thursday’s spectacular IPO, Wood and her husband are among Poshmark’s users who make money from the stock as well.
Wood told Insider that he bought 149 shares at $ 42, the initial share price. Poshmark opened at $ 96.50 on Thursday, which means that its stock rose an exciting $ 14,378 on the first day. It did not sell immediately, and at the close of the market on Friday, the shares were trading at $ 83.20. Your bet is still worth $ 12,397 with a healthy profit of $ 6,139. And she is thrilled.
Poshmark defined 150 as the maximum number of shares available to the main users.
In a leaked email to Insider, Wood shared details of how Poshmark allowed it to buy the IPO.
“Poshmark is reserving a percentage of the shares in the IPO for a Targeted Shares Program (” DSP “). The DSP allows Poshmark to invite eligible POSH Ambassadors and certain ‘friends and family’ to participate in the IPO and purchase Poshmark shares on IPO price, subject to the minimum and maximum share purchase values ”, according to a screenshot of the email seen by Insider.
The email also instructed participants to open a Fidelity investment account to manage the sale of shares.
Poshmark defines ambassadors as users who make at least 15 sales, have at least 50 ads available in their closet, and have an average rating of at least 4.5 stars. In total, Poshmark reserved 330,000 class A shares in the IPO for these super users at the price of the initial public offering, according to document S1. To qualify, users must also reside in the United States and have made at least one sale on the platform between January 1, 2020 and December 2, 2020.
About 4,000 Poshmark users were able to participate and become shareholders, according to a report by Bloomberg News. A Poshmark spokesman said she was unable to confirm this number and could not share additional details about the program.
Read More: Poshmark’s first three investors have just made billions with their spectacular IPO. 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 when she sells, she plans to use part of the IPO money to buy supplies for her classroom and items for her baby. “If I have any money left, I also need a new laptop,” she told Insider.
Poshmark is not the first technology company to offer users to buy shares in the IPO. In December, Airbnb also reserved up to 3.5 million non-voting shares for hosts, representing about 7% of the total offering.
“I am very proud that there will be thousands of shareholders in the community as we become a publicly traded company,” Poshmark CEO Manish Chandra told Insider.
Now read: INTERVIEW: Poshmark CEO Manish Chandra talks about working with Serena Williams, avoiding prison by partnering with the USPS and spending on Balenciaga sneakers.