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Poshmark online clothing resale shares soared more than 130% at the company’s debut on the market Thursday.
The shares started trading at $ 97.50 per share. On Wednesday, Poshmark priced its IPO at $ 42 per share, 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 last round, a D series in November 2017.
Poshmark, founded in 2011, is an Internet marketplace for second-hand shoes and clothing accessories. Like eBay and Etsy, Poshmark connects buyers with sellers, who often list items in their own cabinets. Poshmark makes money from a portion of each transaction.
The company is going public at a time when the 2021 IPO market is heating up. Paying company Affirm soared nearly 100% in its market debut on Wednesday. Pet supply retailer Petco Health and Wellness and online gaming company Playtika are also scheduled to go public on Thursday.
Poshmark filed for an IPO in December. In its IPO prospectus, Poshmark said it benefited from a flood of demand generated by the coronavirus, as home buyers continue to turn to online retailers for essential and non-essential goods. The market served as a source of additional revenue for Poshmark’s 4.5 million sellers, the company said.
Poshmark posted 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 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 women and millennials or Gen Z. It lists Amazon, eBay, Etsy, Facebook, Shopify, TJ Maxx and Walmart among your competitors.
Morgan Stanley and Goldman Sachs are leading the bid.