Rent the Runway announces launch of IPO
Rent the Runway Inc. has announced the terms for its initial public offering, set to list on the Nasdaq Global Select Market under the ticker symbol “RENT.”
The company revealed on Tuesday that it will offer some 15 million shares, which it expects to sell for between $18 and $21 apiece. At $21 a share, Rent the Runway’s valuation could hit nearly $1.3 billion.
Goldman Sachs & Co. LLC, Morgan Stanley & Co. LLC and Barclays Capital Inc. are acting as lead book-running managers for the proposed offering. The company joins the likes of Poshmark, ThredUp, Dr Martens and The RealReal who have all filed for an IPO since the start of the year.
In its filing with the U.S. Securities and Exchange Commission earlier this month, the Brooklyn, New York-based company, which allows users to rent clothes and shop second-hand merchandise from over 750 designer brands, revealed a 39 percent drop in revenue for the fiscal year 2020.
The company reported 2020 revenue of $157.5 million, down from $256.9 million a year earlier. Its net loss widened to $171.1 million in the same period, from $153.9 million a year earlier.
Founded in 2009, the Rent the Runway today offers a wide assortment of millions of items for every occasion, from evening wear and accessories to ready-to-wear, workwear, denim, casual, maternity, outerwear, blouses, knitwear, loungewear, jewelry, handbags, activewear, ski wear, home goods and kidswear.
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