US-headquartered social fashion marketplace Poshmark is going public today on the Nasdaq Global Select Market in a $277m initial public offering that will enable homebuilder JF Shea to exit.
The offering consists of 6.6 million shares priced at $42.00 each, well above the $35 to $39 range Poshmark set last week and valuing it just above $3bn.
Poshmark’s online platform enables users to browse, buy and sell fashion items in addition to interacting with each other and sharing favourite items. It generated a $20.9m net profit in the first nine months of 2020 from sales of nearly $193m.
The offering represents a significant uptick from the reported $1.25bn valuation at which investors bought secondary shares in 2019 as well as the $600m valuation at which the company last raised money, in an $87.5m series D round in 2017 that took its total funding to near $160m.
Temasek led the 2017 round, investing together with Mayfield Fund, Menlo Ventures, GGV Capital, Inventus Capital, Uncork Capital, Union Grove Venture Partners and Cross Creek Advisors.
Poshmark had received $25m the year before in a round led by GGV Capital and backed by JF Shea subsidiary Shea Ventures, Mayfield, Menlo Ventures, Inventus Capital, Union Grove, AngelList and SoftTech VC.
Shea Ventures, Union Grove and existing investors Mayfield, Menlo Ventures, Inventus and SoftTech VC had supplied $25m in series C funding for the company in 2015.
Mayfield remains Poshmark’s largest investor, with a 24% stake diluted from 26.5%. Its other main investors are Menlo Ventures (14.4% post-IPO), Inventus Capital (9.4%), founder and chief executive Manish Chandra (8.4%), Temasek (8.3%) and GGV Capital (7.1%).
Morgan Stanley, Goldman Sachs and Barclays Capital are lead book-running managers for the IPO while Stifel Nicolaus, William Blair, Raymond James, Cowen and Company and JMP Securities are book-running managers.
The underwriters have 30 days to acquire up to 990,000 additional shares, which would lift the size of offering to more than $318m.
