Farfetch’s day has come.
The luxe e-commerce platform’s initial public offering priced above the expected range, fetching $20 a share. That tops the $17 to $19 the company had previously projected and will raise a total of $885 million. About $672 million of that will go to the company, while the balance will go to early investors participating in the offering.
Farfetch will use the money raised for working capital and to “fund incremental growth and other general corporate purposes, including possible acquisitions.”
The strong offering underscores the investor appetite for both digital and luxury — and especially for companies that play at the intersection of the two.
The real test comes today as the stock begins trading on the New York Stock Exchange under the ticker symbol “FTCH.” That’s when regular investors will have a chance to buy into the company — and to sell.
Oftentimes, first-day trading sets the tone for a public company’s stock for months, with a big jump helping to build momentum.