General IPO
January 14, 2021
6 minutes read

Poshmark Pops On IPO Debut

After filing to go public in December, the clothing resale platform Poshmark has finally debuted on the public markets and…

After filing to go public in December, the clothing resale platform Poshmark has finally debuted on the public markets and did so to great investor sentiment that pushed its share price over 150% on its first day of trading.

Poshmark sold shares to investors at $42 per share and raised $252 million. On its trading debut, it opened at $97.50 and rose as high as $104.98 before settling at around $102. The company sports a market cap of over $8.5 billion compared to $3.5 billion at debut.

The investment banks Goldman Sachs, Barclays, and Morgan Stanley were the lead underwriters for Poshmark’s IPO.

Poshmark operates a marketplace that lets users trade new and used clothing items between each other. The company makes money by taking a cut of trades on its platform, bringing in $192.8 million in revenue in the first three quarters of 2020 and a profit of $20.9 million in the same period.

Poshmark reports having 6.2 million active buyers and 31.7 million active users, a large customer base for the marketplace.

Poshmark was founded in 2011 and has debuted on the public markets 10 years later. Before its IPO, the company’s last-known private round valued it at $1.25 billion. Now on the public markets with a market cap of over $8.5 billion, it’s obvious that Poshmark’s founders and investors have reaped big monetary gains.

Photo: Poshmark CEO Manish Chandra by Christopher.Michel, licensed under CC BY 2.0