Online marketplace for secondhand clothing, ThredUp Inc. raised $168 million in an initial public offering priced at the top of a marketed range. The company’s shares jumped nearly 30 percent on Friday’s first day of trading.
On Thursday, Oakland-based ThredUp sold 12 million shares for $14 each after it had marketed them between $12 and 14. The company’s market value is more than 1 billion dollars based on outstanding share listings.
The company noted that millennials and generation Z consumers are driving the shift to secondhand each year: they’re more conscious of sustainability, so they’re likely to shop for used goods.
ThredUp, which sells gently used clothing on its platforms, had a net loss of $48 million in 2020—a significant increase from the previous year’s net loss of $38 million.
ThredUp’s filing with the Securities and Exchange Commission shows that it is backed by Trinity Ventures, Redpoint Ventures, Highland Capital Partners, Park West Ventures, and Upfront Ventures.
The people who own Class A stock will have one vote per share. The owners of the Class B shares, which executives and employees at the company hold, will continue to control it through their ten votes per share. ThredUp’s shares began trading today on the Nasdaq Global Select Market under the symbol “TDUP.” Goldman Sachs Group Inc. and Morgan Stanley are leading the offering.