ThredUp Inc.’s shares opened 30% above the listing price on its market debut on Friday, a sign that investors remain optimistic about second-hand online retailing.
The shares of the Oakland, Calif.-Based retailer started trading at $ 18.25 after being set at $ 14, which was the upper limit of its previously announced range. At the listing price, ThredUp, which sold 12 million shares, raised $ 168 million at a valuation of about $ 1.3 billion.
ThredUp will use the resources to expand its business, including adding new categories, and making new investments in the company’s operating platform and technology, said co-founder and chief executive James Reinhart in an interview on Friday. The initial public offering is “just another validation of the market opportunity, and ThredUp operates in the largest and fattest part of the market at our price level,” he said.
ThredUp, which sells women’s and children’s clothing, had revenue of $ 186 million last year, a 14% jump from the previous year, according to a filing with the Securities and Exchange Commission. The company lost $ 48 million last year, compared to a loss of $ 38 million in 2019.
The company said it had 1.2 million active buyers at the end of last year, an increase of 24% over the previous year. On average, these customers visited ThredUp six times a month and placed 3.2 orders per year. The company defines active buyers as customers who have made at least one purchase in the past 12 months. “Customers remain engaged on our platform and buy at higher prices,” said Reinhart. “I think it shows remarkable resilience.”