Poshmark Inc. is ready for a $3 billion introduction to Wall Street — and its valuation could go higher still once traders get their hands on the stock.
The company priced its IPO at $42 a share, above its initial range of $35 to $39 a share and showing strong demand in the market.
Poshmark will raise $277 million by selling 6.6 million of its Class A shares and will use the funds to increase its financial flexibility. More could be raised if underwriters exercise options to buy stock.
The company, led by cofounder, president and chief executive officer Manish Chandra, will start trading today on the Nasdaq exchange under the “POSH” ticker symbol.
Poshmark has tapped into the trend toward thrift with an online marketplace that sells secondhand styles, a movement that has been furthered by growing concerns about sustainability,
As of September, the company counted 4.5 million active sellers, 6.2 million active buyers and more than 201 million listed items.
For the first nine months of this fiscal year, revenues rose 28 percent to $192.8 million with earnings of $21.8 million.
Poshmark is part of a wave of offerings that has companies looking to take advantage of a market that is still very strong and all the more so considering how hard the pandemic has hit the economy.
Washington has pumped billions of dollars into the system to shore up the economy, with an outsized impact on Wall Street as investors seek places for all that money to go.
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