The ThredUp IPO and Nasdaq Listing:
Introduction:
On April 15, 2021, fashion resale giant Thredup (NASDAQ:TDUP) went public through an initial public offering (IPO) priced at $18.00 per share. The IPO raised $168 million, valuing the company at over $2.5 billion. The proceeds of the offering will be used to fuel ThredUp’s growth as it seeks to expand its market share and continue to lead in the fashion resale market.
Underpriced IPO
The IPO was initially underpriced by the underwriters, with shares popping to as much as $44.40 per share in the early days of trading. This provided a sharp entry opportunity for day traders and long-term investors, with TDUP shares climbing more than 142% in the first two trading days alone. The stock has since been able to hold onto its gains and is currently trading at around $35.00.
The Growing Resale Market
The ThredUp Nasdaq listing puts the growing resale and circular fashion industry, in which ThredUp is a leader, in the spotlight. The company manages an inventory of over 60 million items from over 35,000 brands. This inventory is listed on ThredUp’s website, as well as on platforms such as eBay and The RealReal.
In 2020, the global market for second-hand and resale clothing was valued at $35 billion, but is expected to grow to over $100 billion by 2028. ThredUp’s IPO signals that the idea of buying and selling second-hand clothes is mainstream and long-term sustainable.
What Does the Future Hold?
The company aims to invest in its partnerships and technology to remain at the forefront of the resale industry. ThredUp plans to expand to new categories, such as beauty and home goods, and further develop its operating infrastructure. However, the company faces competition from other resale companies like Poshmark and TheRealReal, as well as big fashion retailers such as H&M and Macy’s, due to the latter’s own foray into the second-hand clothing market.
Related Examples
An example of a large fashion resale company raising capital through a NASDAQ listing is private fashion technology and e-commerce company Stitch Fix, which raised $120 million in its July 2017 IPO.
Another example is online fashion marketplace Zalando, which went public on the Frankfurt Stock Exchange in October 2014 and raised €546 million ($650 million) and was valued at over €6.3 billion ($7.3 billion).
FAQs:
Q: How much money did ThredUp raise through its IPO?
A: ThredUp raised $168 million through its April 2021 IPO.
Q: What is the current valuation of ThredUp?
A: ThredUp’s April 2021 IPO valued the company at over $2.5 billion.
Q: What are some other examples of fashion resale companies that have gone public?
A: Some examples include Stitch Fix, Zalando, and Poshmark.
