Shares of online clothing reseller Poshmark began trading on Nasdaq on Thursday at $97.50 per share, a rise of more than 130%, reports CNBC. Poshmark had priced its IPO at $42 a share on Wednesday, giving it an initial valuation of more than $3 billion.
- Poshmark expected to sell its shares between $35 and $39 and was valued at nearly $600 million in November 2017.
- The company is trying to differentiate itself from other online clothing resellers by focusing on “social commerce,” wherein buyers and sellers can chat casually about items on the site.
- Poshmark, which filed to go public in December, has benefited from a demand surge fueled by stuck-at-home shoppers during the coronavirus pandemic.
- The company posted $192.8 million in revenue in the first three quarters of 2020, up 28% year over year, turning a profit of $20.9 million during the period.
- Poshmark now boasts about 6.2 million active buyers and 31.7 million active users, the majority of whom are female and either millennial or Gen Z.
Poshmark’s stock is currently gaining. POSH: NASDAQ is up 131%