Rafael Henrique | LightRocket | Getty Images
Shares of online clothing distributor Poshmark appeared more than 130% Thursday at the company’s market debut.
Shares began trading at $ 97.50 per share. On Wednesday, Poshmark was listed on the stock exchange at $ 42 per share, giving it an initial valuation of more than $ 3 billion.
The company previously said it expected to sell shares for between $ 35 and $ 39. It was valued at nearly $ 600 million in its final 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 from their own closet. Poshmark makes money by reducing each transaction.
The company will be made public at a time when the 2021 IPO market is heating up. Payment company Affirm shot up nearly 100% in its market debut on Wednesday. Pet supplies retailer Petco Health and Wellness and online gaming company Playtika are also scheduled to go public on Thursday.
Poshmark introduced its publication in December. In its IPO brochure, Poshmark said it has benefited from a flood of demand generated by the coronavirus as trapped buyers continue to turn to online retailers for essential and non-essential products. The market has served as a source of additional revenue for Poshmark’s 4.5 million vendors, the company said.
Poshmark earned $ 192.8 million in the first three quarters of 2020, up 28% from the same period last year, according to its S-1. The company also revealed that it made a profit of $ 20.9 million in this stretch, 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 its competitors.
Morgan Stanley and Goldman Sachs lead the bid.