Mercari, a Japan-based online marketplace operator backed by corporates GMO, Itochu, Mitsui and United, has priced its shares at ¥3,000 ($27.30) and will raise up to $1.19bn, Reuters reported today.
The company will list on the Tokyo Stock Exchange on June 19, achieving a valuation of $3.7bn. selling. It had targeted a pricing range of $20 to $24.60 for a valuation of $3.3bn last month, up from an initial target of $1.8bn in January.
Mercari is issuing approximately 18.2 million new shares, while existing investors are selling some 22.5 million shares. The company has also allocated more than 2.8 million shares to an overallotment option.
Founded in 2013, Mercari runs a marketplace app that lets consumers buy and sell second-hand goods. The company said its app has been downloaded more than 100 million times across Japan, the US and the UK, particularly attracting a young, unbanked demographic.
Proceeds are set to allow Mercari to expand further internationally and gain traction in the US.
Mercari has raised approximately $115m in equity to date. In 2016, the company closed a $75m series D round including conglomerate Mitsui, financial services firm Sumitomo Mitsui Trust Bank’s Japan Co-Invest unit and public financial institution Development Bank of Japan.
The series D round valued Mercari at more than $1bn and also featured Globis Capital Partners, World Innovation Lab and Global Brain.
Internet group United made a $3m investment in Mercari in 2013 that was followed by Global Brain and Globis joining Itochu Technology Ventures and GMO Venture Partners, respective investment arms of conglomerate Itochu and internet company GMO, to add $14m in March 2014.
GMO Venture Partners, Global Brain, Globis, East Ventures and World Innovation Lab then provided another $22m for Mercari seven months later.