Secondhand Clothing Site ThredUp Jumps After $168 Million IPO

(Bloomberg) -- ThredUp Inc., the online marketplace for secondhand clothing, jumped as much as 32% in its trading debut after a $168 million initial public offering.

Shares of ThredUp, which sold for $14 in the IPO, opened at $18.25 and were up 27% to $17.73 at 12:11 p.m. Friday in New York trading, giving the company a market value of $1.6 billion.

The Oakland, California-based company sold 12 million shares Thursday after marketing them for $12 to $14.

“More millennial and generation Z consumers are driving the shift to secondhand each year,” the company said in its filing with the U.S. 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 $48 million on $186 million in revenue in 2020, compared with a $38 million loss on $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 Inc. and Morgan Stanley. ThredUp is trading on the Nasdaq Global Select Market under the symbol TDUP.

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