March 26, 2021

Second-hand clothing site ThredUP raises US$168m in IPO

By ellen

NEW YORK (BLOOMBERG) – ThredUp, an online marketplace for second-hand clothing, raised US$168 million (S$226.5 million) in an initial public offering priced at the top of a marketed range.

The California-based company sold 12 million shares on Thursday (March 25) for US$14 each after marketing them for US$12 to US$14, according to a statement. ThredUp has a market value of US$1.27 billion based on the outstanding shares listed in its filings.

“More millennial and generation Z consumers are driving the shift to second-hand each year,” the company said in its filing with the US Securities and Exchange Commission. Younger customers are more conscious with sustainability and therefore more likely to shop for secondhand goods, it said.

ThredUp said it had a net loss of US$48 million on US$186 million in revenue in 2020, compared with a US$38 million loss on US$164 million the previous year.The company’s backers include Trinity Ventures, Redpoint Ventures, Highland Capital Partners, Park West Ventures and Upfront Ventures, according to ThredUp’s filing.

Holders of the Class A stock sold in the IPO will get one vote per share, while owners of Class B shares will get 10 votes for each share and will continue to control the company, according to the filings.The offering is being led by Goldman Sachs Group and Morgan Stanley. ThredUp’s shares are expected to begin trading on Friday on the Nasdaq Global Select Market under the symbol TDUP.