Oct. 18 (Reuters) – Rent the Runway targets a valuation of nearly $ 1.3 billion in its U.S. IPO, as the fashion rental company looks to capitalize on growing interest in second-hand clothes.
The company, founded in 2009, enables users to rent and purchase second-hand clothing and accessories such as handbags and jewelry in more than 18,000 styles from more than 750 designer brands. It also allows customers to rent and purchase household items.
Rent the Runway plans to sell 15 million shares at a price of between $ 18.00 and $ 21.00 each when it goes public, raising $ 315 million, according to a filing.
Earlier this month, the Brooklyn, New York-based company announced a nearly 39% drop in revenue for fiscal 2020. Its revenue was also hit in the first half of this fiscal year, with revenues down 9% for the period. ended July 31.
Rent the Runway said its active subscribers more than doubled to 111,732 in the first nine months of 2021.
The demand for second-hand clothing has jumped in recent months as customers become more aware of their carbon footprint, increasing revenues for the styling service Stitch Fix (SFIX.O) and the online resale store ThredUp. (TDUP.O).
Goldman Sachs & Co, Morgan Stanley and Barclays are the main underwriters of the offer. Rent the Runway will list its shares on Nasdaq under the symbol “RENT”.
Report by Noor Zainab Hussain in Bengaluru; Editing by Maju Samuel and Subhranshu Sahu
Our Standards: The Thomson Reuters Trust Principles.