Oct 18 Reuters - Rent The Runway is aiming for a valuation of near $1.3 billion in its U.S. initial public offering, as the fashion rental company looks to cash out on the rapid interest in pre-owned clothing.
Rent the Runway is launched in 2009 and lets users rent clothes and shop second-hand accessories such as handbags and jewelry in more than 750 styles from over 18,000 brands.
The company plans to sell 15 million shares priced between $18.00 and $21.00 apiece in its IPO, raising $315 Million according to a filing https: www.sec.com The Brooklyn, New York-based company disclosed a nearly 39% drop in revenue earlier this month for the fiscal year 2020.
The company top-line took a hit in the first half of this fiscal year with revenue down 9% for the period ended July 31.
However, demand for second-hand clothing has jumped in recent months as customers become increasingly aware of their carbon footprints, boosting revenues at styling service Stitch Fix and online resale shop ThredUp.
Goldman Sachs Co, Morgan Stanley and Barclays are the leading underwriters for the offering.