NEW YORK (AP) – Poshmark shares soared when they debuted in public markets on Thursday, a testament to the strength of the online second-hand goods market, even during a pandemic.
The company, founded in 2011 by Manish Chandra, debuted on the Nasdaq Stock Market and is listed under the symbol “POSH”. Late Wednesday, the initial public offering of 6.6 million shares was valued at $ 42 per share, above an expected range of $ 35 to $ 39 per share.
The stock jumped to $ 101.25, or 141% on Thursday night.
Poshmark, based in Redwood City, Calif., Is hitting public markets as the coronavirus continues to hit traditional physical retailers, particularly those operating in malls. But many online second-hand sellers like Poshmark have flourished. Poshmark has benefited from the drastic shift in shoppers to online shopping and the focus of customers on second-hand products. Poshmark is also a social marketplace where users buy and sell directly with each other and interact, which resonated with many isolated people.
Poshmark, which has 70 million total users, achieved profitability for the first time in the quarter ended June 30.
For the nine-month period ended Sept. 30, revenue increased to $ 192.76 million, up 28% from $ 150.49 million the year before, according to its prospectus filed with of the Securities and Exchange Commission.
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