Second-hand shopping site Poshmark hit a value of more than $7.1bn (£5.2bn) in its first day of trading, as investor demand sent its shares soaring.
The popularity of resale platforms is expected to rise, as shoppers grow more budget and environmentally conscious.
Poshmark also got a boost from the surge in online shopping due to the pandemic.
Poshmark turns used clothes into $7.1bn stock listing https://t.co/SoLJ20qlnP
— BBC Business (@BBCBusiness) January 14, 2021
The firm, which raised about $277m in the Nasdaq listing, reported its first-ever quarterly profit this spring.
Its first day of stock market trading comes amid booming investor appetite for share offerings.
Holiday booking site Airbnb and food delivery firm DoorDash were among a wave of companies that listed last year.
Investors mobbed their initial public offerings, prompting share price and market value to surge far higher than expected.
Poshmark saw a similar phenomenon. It priced shares at $42 each, well above the initial target, and they started trading at $97.60 each, giving a value of about $7.1bn.
Founded in California in 2011, Poshmark has been backed by celebrities including Hollywood actor Ashton Kutcher and celebrity stylist-turned-designer Rachel Zoe.
Focused on used clothing and accessories, it provides a platform like eBay or Etsy that links buyers and sellers, mixing features from social media. It makes money by taking a 20% cut of each sale.
In filings with regulators last year, Poshmark said more than 30 million people had logged into the site over the last 12 months, with more than 6 million people buying at least one item.
Over the 12 months to 30 September, it reported a slim $6.2m profit, from revenue of almost $250m.
But the firm, which is currently active in the US and Canada, warned investors: "We cannot assure you that we will maintain our profitability in future periods, and we may incur significant losses in future periods".
Poshmark is not the first company to test market appetite for resale sites.
In the US, TheRealReal, which focuses on luxury goods, debuted last year, and other second-hand shopping sites, including rival ThredUp, have also said they are planning share offerings.
Latest Stories
-
5 dead, over 14 injured in gory accident near Obuasi
5 mins -
Cleaner to stand trial over Cashier’s death at Twumasiwaa Hospital
24 mins -
Global financial institutions call for comprehensive treaty to end plastic pollution
35 mins -
Electoral processes, ethnoreligious cleavages threats to Ghana’s 2024 election – WANEP
35 mins -
Harnessing intuition, reasoning, and memory to navigate the AI age
1 hour -
Azumah Nelson Sports Complex: Gov’t advised to terminate project contract
1 hour -
Dumsor will be a thing of the past soon – Bawumia assures
1 hour -
Why do you always run to the media? – EC quizzes IMANI
2 hours -
Francis Doku charges government to market traditional festivals
2 hours -
Ghana records an average of 9,900 snakebites annually
2 hours -
Fella Makafui sets record straight on relationship with D-Black
2 hours -
CEGENSA celebrates mentors for nurturing UG’s upcoming female leaders in academia
2 hours -
Dr. Bawumia begins Eastern regional tour with religious leaders in Akropong
2 hours -
Akosombo Dam Spillage: Would victims have been ignored if they were in swing constituencies – Ablakwa fumes
2 hours -
Have capacity to influence policy – former MiDA boss to engineers
2 hours