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October 27 (Reuters) – Rent the Runway fashion company RENT.O got an evaluation of $ 1.7 billion after opening its shares nearly 10% above them initial offer price Wednesday, becoming the latest consumer-oriented company to make a successful market debut in the United States.
Shares of the Brooklyn, New York-based company opened to $ 23, more of his Initial Public Offering price of $ 21 each.
Rent the Runway sold 17 million shares to raise $ 357 million in its grossed-up share sale, priced at upper end of his initial range from $ 18 to $ 21.
Several consumer-focused companies, including eyewear company Warby Parker WRBY.N and the shoemaker supported by Roger Federer On Holding AG ONON.N have had a strong market debut in recent months, while others, like sneaker maker Allbirds, are looking to capitalize on the easy monetary conditions that have fueled a bull run for the US IPO market.
“Women did not have to go back to the office to return to Rent the Runway”, Rent the track Co-founder and CEO Jennifer Hyman said in an interview with Reuters.
Hyman added that changes to subscription plans to make them more personalized for users have resulted in greater loyalty and increased margins.
Goldman Sachs & Co, Morgan Stanley and Barclays are the main underwriters of the offer.
(Reporting by Niket Nishant in Bangalore; editing by Maju Samuel)
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