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.

    RELATED ARTICLES

    investing in Crypto

    Investing in Crypto: A Guide for Smart Investors & Fundamentals

    Investing in cryptocurrencies has turned out to be an international phenomenon, attracting each institutional and...
    How To Find the Best FD Interest Rate for Senior Citizens Using an FD Interest Calculator

    How To Find the Best FD Interest Rate for Senior Citizens Using an FD Interest Calculator

    FDs are one of the most preferred investment products for senior citizens as they offer...
    When was Studio Ghibli founded

    When Was Studio Ghibli Founded: Japan’s Iconic Animation Legacy

    Studio Ghibli is a popular Japanese animation studio, known by many for its stunning movies,...
    online jobs for students

    Online Jobs for Students: Best ways to Earn Money & Build Skills 

    Balancing academics and price range can be challenging for college students, but online jobs offer...
    Best Trading Apps to Open a Demat Account

    Best Trading Apps to Open a Demat Account: Features & Fees

    Investing in the stock market has become more accessible than ever with trading apps that...
    5 Mistakes to Avoid for Choosing the Best Share Market App

    5 Mistakes to Avoid for Choosing the Best Share Market App

    Investing in the Indian share market is now easier than ever in the current digital...
    Expand Image Boundaries in Seconds With AI

    Expand Image Boundaries in Seconds With AI

    You’ve finally found the perfect image for your project or post, except it’s just a...
    high fiber foods

    High Fiber Foods for a Healthy Digestive System

    Fiber is a vital nutrient that plays a vital role in maintaining good health. Despite...
    calorie calculator

    Calorie Calculator and Insights: How many calories to lose weight

    Losing weight is an extensively pursued purpose, but the essential precept remains regular: keeping a...
    best video editing app

    Best Video Editing App: How to Edit Like a Pro

    In the continually shifting world of digital media, video editing has become essential for makers...
    srd status check

    SRD Status Check: Unlocking Your Grant Journey, Step-by-Step

    SRD status check – those three words can carry a lot of weight, can't they?...