Online handcrafted marketplace Etsy Inc.’s shares closed at $30 on Thursday in their first day of trading.
The closing price represented a 87.5 percent increase from the initial pricing of $16 a share set the night before. Etsy began trading on the Nasdaq Thursday morning under the symbol “ETSY” and jumped 91 percent when it began trading, giving it a valuation of over $3.7 billion. Later in the morning it rose higher, jumping 123.4 percent to $35.74, before settling back down to the closing price. More than 19.7 million shares changed hands.
The company, based in Brooklyn, N.Y., posted $195.6 million in revenue last year and had gross merchandise sales on the marketplace platform of $1.93 billion, according to a filing with the Securities and Exchange Commission in connection with its IPO earlier this year. Etsy so far doesn’t make any money, posting a loss of $15.2 million last year. The company filed its shelf registration with the SEC on March 4.
Founded in 2005, the company at the end of 2014 had 1.4 million active sellers; 19.8 million active buyers; 29 million items listed, and 685 employees worldwide. The transaction cost per sale is 3.5 percent and the cost of listing an item is 20 cents.
Research firm Renaissance Capital said late last year that it expected 2015 to be a strong year for IPOs. Last year was particularly active for the U.S. markets, which drew attention from the number of Web-based platform firms that went public. Those include Cnova, Jumei, JD.com and, of course, Alibaba.