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Shares of online clothing retailer Poshmark surged more than 130% in the company’s market debut Thursday.
The shares started trading at $ 97.50 per share. On Wednesday, Poshmark cost its IPO at $ 42 a share, giving it an initial valuation of more than $ 3 billion.
The company previously said it expected to sell stock between $ 35 and $ 39. It was estimated to be nearly $ 600 million in the latest round, a Series D in November 2017.
Founded in 2011, Poshmark is an internet marketplace for second-hand clothing, shoes and accessories. Like eBay and Etsy, Poshmark connects buyers with sellers, who often list items from their own closet. Poshmark makes money by lowering every trade.
The company goes public at a time when the IPO market is heating up in 2021. Payment company Affirm shot up almost 100% on Wednesday during its market debut. Pet shop Petco Health and Wellness and online gaming company Playtika will also go public on Thursday.
Poshmark filed for publication in December. In its IPO prospectus, Poshmark said it has benefited from a flood of demand generated by the coronavirus as trapped customers continue to turn to online retailers for essential and non-essential goods. The marketplace has served as a source of additional income for Poshmark’s 4.5 million sellers, the company said.
Poshmark raised $ 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 on that trajectory, after losing $ 33.9 million a year ago.
The company now has 6.2 million active buyers and 31.7 million active users, the majority of whom are female and are either millennials or Gen Z. It lists Amazon, eBay, Etsy, Facebook, Shopify, TJ Maxx and Walmart among its competitors.
Morgan Stanley and Goldman Sachs are leading the offer.