Wall Street suits will be playing close attention to your old clothes today.
ThredUp, the virtual thrift store where people buy and sell secondhand apparel, will make its market debut on Friday in the latest sign of investor confidence in the booming online resale industry. In an initial public offering led by Goldman Sachs, Morgan Stanley, and Barclays, the company has priced 12 million shares at $14 a share, the higher end of its expected range, valuing the company at $1.3 billion. It will trade on the Nasdaq under the ticker symbol TDUP.
Eleven-year-old ThredUp specializes in fashion items for women and children, but it also works directly with retailers such as Macy’s and JCPenney to sell items in stores. The Oakland, California, company said it had 1.24 million active buyers and 428,000 active sellers as of December of last year.
The IPO comes two months after online resale platform Poshmark made its Nasdaq debut. While shares of Poshmark popped on opening day, the stock has fallen since the company’s first earnings report earlier this month, in which it warned of reduced demand for apparel in parts of the United States as a result of COVID-19 restrictions. Even so, Poshmark beat analysts’ estimates on revenue, and the resale boom has plenty of room to grow as younger consumers who were weaned secondhand fashion rise in purchasing power.
Fast Company‘s Elizabeth Segran will have a full analysis of ThredUp’s IPO, including an interview with CEO James Reinhart, on Monday.