Rafael Heinrich | Lighterket | Getty Images
Online clothing reseller Poshmark shares popped over 130% Thursday in the company’s market debut.
The stock started trading at $ 97.50 per share. On Wednesday, Poshmark priced its IPO at $ 42 per share, giving it an initial valuation of over $ 3 billion.
The company previously said it expects to sell the stock for between $ 35 and $ 39. It was valued at around $ 600 million in its final round, a Series D in November 2017.
Poshmark, founded in 2011, is an internet marketplace for second-hand dress shoes and accessories. Like eBay and Etsy, Poshmark connects buyers with sellers, who often list items from their wardrobe. Poshmark makes money by deducting every transaction.
The company is going public at a time when the 2021 IPO market is heating up. Payments company Affirm on Wednesday hit almost 100% of its market debut. Pet supply retailer Petco Health & Wellness and online gaming company Platika are also slated to go public on Thursday.
Poshmark filed to go public in December. In its IPO prospectus, Poshmark said it benefited from a flood of demand generated by coronaviruses, as stuck home buyers turn to online retailers for essential and non-essential goods. The company said the market served as a source of additional income for Poshmark’s 4.5 million vendors.
According to its S-1, Poshmark brought in $ 192.8 million in revenue in the first three quarters of 2020, a 28% increase from the same period last year. The company also revealed that after a loss of $ 33.9 million a year earlier, there was a $ 20.9 million profit over that stretch.
The company now counts 6.2 million active buyers and 31.7 million active users, the majority of which are female and either Millennials or Gen Z. It lists its rivals Amazon, eBay, ETC, Facebook, Shopify, TJ Maxx and Walmart.
Morgan Stanley and Goldman Sachs are leading the offering.