UPDATE 1-Fashion company Rent the Runway valued at $ 1.7 billion after shares rise when it debuts


(Add details of IPO, company background)

Oct. 27 (Reuters) – Fashion firm Rent the Runway earned $ 1.7 billion after its shares opened nearly 10% above their original offer price on Wednesday, becoming the latest company to target consumers to debut in the United States market.

Shares of the Brooklyn, New York-based company opened at $ 23, from $ 21 each.

Rent the Runway sold 17 million shares to raise $ 357 million in its grossed-up share sale, which was priced at the top of its initial range of $ 18 to $ 21.

Several consumer-facing companies, including eyewear company Warby Parker and Roger Federer-backed shoemaker On Holding AG, have made strong market debuts in recent months, while others, such as sneaker maker Allbirds, have made strong market debuts in recent months. seek to capitalize on the easy financial conditions that fueled a bull run for the US IPO market.

“Women didn’t have to go back to the office to return to Rent the Runway,” Jennifer Hyman, co-founder and CEO of Rent the Runway, 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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