-0.2 C
New York
Thursday, December 9, 2021

Fashion company Rent the Runway IPO to raise $315 million

New York-based fashion rental company, Rent the Runway Inc. plans to mop up $315 million in its maiden Initial public offering on the U.S. bourses.

According to Bloomberg News, the company is planning to sell 15 million shares in the price band of $18 to $21 per share. The company has completed the filing with the U.S. Securities and Exchange Commission.

Based on $21 per share, the company is expected to have a valuation of $1.3billion as per the shares offered in the IPO prospectus

The covid pandemic affected the company’s business as people under lockdown found little motivation to dress up. The delta variant and the work from home impacted sales. The company’s financial performance was affected as it struggled to grow during this period. 

The company suffered a net loss of $85 million on an $80 million revenue for six months ending July 31, 2021. This loss was more or less the same as the $88 million loss on $ 88.5 million revenue during the corresponding period in 2020. 

Though the losses persisted over 2020-21, the company’s active subscriber base grew and doubled to 112,000 on September 30 since February 1, 2021.

Rent the Runway was co-founded by Jenny Fleiss and Jennifer Hyman in 2009. The company has accumulated debts of $ 674.1 million and has cautioned the risk of being unable to achieve profitability or sustain them in its prospectus. 

As per the company statement, they need to generate increased revenue and manage costs to achieve profitability and sustain them. Even after that, the risk remains. 

The lead managers to the IPO are Morgan Stanley, Barleys Plc. and Goldman Sachs Group Inc. The shares are expected to be listed under the symbol RENT on the Nasdaq Global Select Market.

Latest news

Kiara Dawson
Kiara Dawson comes from an Engineering background, with a specialization in Information Technology. She has a keen interest and expertise in Web Development, Data Analytics, and Research. She trusts in the process of growth through knowledge and hard work.

Read Also

- Advertisement -


Please enter your comment!
Please enter your name here

Business Upside eMagazine
Business Upside eMagazine
Business Upside eMagazine