Poshmark (NASDAQ: POSH), online clothing reseller, made its market debut Thursday, with shares jumping over 130%. The stock opened at USD97.50 and reached a high of USD104.98. On Wednesday, the company had priced its IPO for USD42 per share, giving it a valuation of over USD3 Billion.
Prior to its IPO, the company had anticipated shares priced between USD35 and USD39. It had been valued for almost USD600 Million during its last round in November 2017.
Founded in 2011, the marketplace allows consumers to buy and sell both new and used items such as clothing, shoes and jewelry. As of September 30, the platform had 4.5 million active sellers. Poshmark takes a 20% cut of all sales over USD15.
Within its IPO prospectus, the company revealed it had experienced growth throughout the coronavirus pandemic as demand increased. Furthermore, the platform has managed to provide additional income to its 4.5 million sellers during the economic downturn.
Throughout the first three quarters of 2020, Poshmark’s revenue amounted to USD192.8 Million, an overall 28% jump in comparison to the previous year as noted in its S-1. Additionally, it made a profit of USD20.9 Million in that time period, compared to last year’s USD33.9 Million loss.
Currently, the company accounts for 6.2 million active buyers and 31.7 million active users. The majority of users are female and either millennials or Gen Z.
Morgan Stanley and Goldman Sachs are leading the offering.