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Poshmark stock has more than doubled from its IPO price. CEO Manish Chandra sees the secondhand market ramping up for branded apparel and other goods as consumers embrace social selling. Michael Nagle/Bloomberg
Poshmark on Thursday continued the recent run of spectacular venture-backed initial public offerings, priced at $42 a share, above the $35 to $39 target range and opening at $97.50, a gain of more than 130% from the IPO price. Poshmark founder and CEO Manish Chandra sees a potentially huge market that’s just getting started and apparently investors agree with him.
Including the “green shoe,” over-allotment option, Poshmark (ticker: POSH)will have 74 million primary shares outstanding after the offering, giving the company a market valuation of around $7.5 billion. On a fully diluted basis, reflecting in-the-money options and restricted stock units, there are about 10 million more shares, boosting the valuation
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Affirm late Tuesday priced an offering of 24.6 million Class A shares at $49 each, above the recently increased target range of $41 to $44 a share. The original range was $33 to $38.
The IPO price values the consumer lender above $15 billion, once accounting for all outstanding shares and stock options.
The offering is led by Morgan Stanley, Goldman Sachs, and Allen & Co. Affirm will trade on Nasdaq under the symbol AFRM. Shares are set to begin trading Wednesday.
Affirm had revenue for the June 2020 fiscal year of $509.5 million, up 93% from a year ago, while losing $112.6 million. For the September quarter, revenue was $174 million, up about 98% from the comparable year-earlier period, with a loss of $15.3 million.