ThredUp Inc., an online marketplace for secondhand clothing, raised $168 million in an initial public offering priced at the top of a marketed range. The company’s shares jumped nearly 30 percent in initial trading on Friday.
The Oakland, California-based company sold 12 million shares Thursday for $14 each after marketing them for $12 to $14, according to a statement. ThredUp has a market value of $1.27 billion based on the outstanding shares listed in its filings.
“More millennial and generation Z consumers are driving the shift to secondhand each year,” the company said in its filing with the U.S. Securities and Exchange Commission. Younger customers are more conscious with sustainability and therefore more likely to shop for secondhand goods, it said.
ThredUp said it had a net loss of $48 million on $186 million in revenue in 2020, compared with a $38 million loss on $164 million the previous year.
The company’s backers include Trinity Ventures, Redpoint Ventures, Highland Capital Partners, Park West Ventures and Upfront Ventures, according to ThredUp’s filing.
Holders of the Class A stock sold in the IPO will get one vote per share, while owners of Class B shares will get 10 votes for each share and will continue to control the company, according to the filings.
The offering is being led by Goldman Sachs Group Inc. and Morgan Stanley. ThredUp’s shares will begin trading on the Nasdaq Global Select Market under the symbol “TDUP.”