A Very Successful IPO So Far
Poshmark, an online marketplace for new and second-hand style for “fashion, home decor, beauty, and more,” according to its website, saw its stock explode over 140% yesterday during its public trading debut. Now, the company is valued at around $7.5 billion.
Poshmark initially said it would offer its shares at $35 to $39 each before increasing the business’s targeted price to $42 amid higher interest. However, a surge in demand for shares of the company resulted in an opening price of $97.50.
Ultimately, the stock hit a high of $104.98 per share for the company before pulling back to close the first trading day at $101.50. Overall, the business raised $277 million after it sold 6.6 million shares in its initial public offering (IPO).
“In addition, the underwriters have a 30-day option to buy up to an additional 990,000 shares of Class A common stock from the company at the IPO price, less underwriting discounts and commissions. The closing of the offering is expected to occur on Jan. 19, 2021, subject to satisfaction of customary closing conditions,” the company said in a statement.
The business reported that it has 4.5 million active sellers on its website as of September 30. According to online reports, the company has 70 million registered users across the US and Canada. Tens of millions of users can choose between 201 million secondhand and new items.
“We see people actually going to events, going to offices, actually participating in the world as an accelerant, because 45% of the items we sell are apparel. That’s really something that’s not seen that level of excitement as it will be when we actually interact in the physical world,” Poshmark CEO Manish Chandra said.
Last year, the business reported it generated revenues of $192.8 million for the first three quarters of the year. The company will also see last year as a “turnaround” year as it managed to swing from a $33.9 million loss in 2019 to a profit of $20.9 million during the same period.
Poshmark, an online marketplace for second-hand goods, made enormous success yesterday after it sold 6.6 million shares for $277 million. Shares exploded over 140% during its public market debut on Thursday.
About the Author
As an analyst of global affairs, Adriaan has an MSC from Oxford, with diverse interests in the digital economy, entertainment, and business. He is a specialist trainer in Advanced Analytics & Media.