Fashion company Rent the Runway aims to be valued at nearly $1.3 billion in US IPO

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FILE PHOTO: A woman looks at clothing at Rent the Runway store, September 12, 2019 in New York City, NY, USA, an online subscription service for women to rent designer clothing and accessories. The photo was taken on 12 September 2019. Reuters / Shannon Stapleton / FILE PHOTO

October 19, 2021

(Reuters) – Rent the Runway is aiming for an initial public offering of about US$1.3 billion, as fashion rental companies seek to take advantage of the growing interest in vintage clothing.

Founded in 2009, the company allows users to rent and buy over 18,000 styles of used clothing, handbags, jewelry and other accessories from over 750 designer brands. Customers can also rent and shop household items.

According to the filing https://www.sec.gov/Archives/edgar/data/1468327/000119312521301156/d194411ds1a.htm, Rent the Runway sells 15 million shares at an IPO price of $18.00 to $21.00 per share. and will raise $315 million. ..

Earlier this month, the Brooklyn-based company in New York disclosed a nearly 39% drop in revenue for fiscal year 2020. Its top line was also affected in the first half of the year, with revenue down 9% during the period. It expired on 31 July.

According to Rent the Runway, active customers more than doubled to 111,732 in the first nine months of 2021.

Demand for vintage clothing has skyrocketed in recent months as customers become more aware of carbon dioxide emissions and increased revenue from styling service Stitchfix and online reseller ThredUp.

Goldman Sachs & Company, Morgan Stanley and Barclays are the principal underwriters for this offering. Rent the Runway will list its shares on the Nasdaq with the symbol “Rent”.

(Reporting by Noor Zainab Hussain in Bangalore; Edited by Maju Samuel and Subhranshu Sahu)

Fashion company Rent the Runway aims to be valued at nearly $1.3 billion in US IPO

Source Link Fashion company Rent the Runway aims to be valued at nearly $1.3 billion in US IPO

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