Farfetch, which sells luxury clothing online, hopes to raise US$885 million from Friday’s initial public offering on the New York Stock Exchange after pricing its shares above its marketed range.

Fashion e-tailer Farfetch eyes New York listing as online luxury sales surge

The London-based company said on Thursday that it and an existing shareholder were selling a combined total of 44.2 million shares for US$20 each. Farfetch had marketed the shares for US$17 to US$19 each.

The shares are to be traded on Friday on the New York Stock Exchange under the symbol FTCH.

An IPO is when a company’s shares are sold to the public for the first time.

Farfetch – which runs an online marketplace for luxury goods offered by nearly 1,000 brands and boutiques worldwide, rather than holding stock itself – is keen to capitalise on the rapid growth in luxury sales on the web.

Net-a-Porter founder Natalie Massenet joins rival Farfetch

Farfetch’s website helps global, deep-pocketed shoppers get their hands on high-end goods such as an US$8,287 leopard-print coat or US$980 trainers.

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From THAT @richardquinn1 collection Tap to shop from @leclaireur #FarfetchBTQ

A post shared by Farfetch (@farfetch) on Sep 13, 2018 at 8:12am PDT

The company also offers services that help sellers create content for online boutiques, manage product returns and analyse consumer data to determine pricing and inventory.

Fashion e-tailer Farfetch eyes listing as online luxury sales surge

Farfetch had 935,772 active consumers as of December 31 – an increase of almost 44 per cent from a year earlier, according to a regulatory filing.

It lost US$58 million last year on US$386 million of revenue. That compared with a net loss of US$53 million on US$242 million in sales in 2016.

Goldman Sachs, JPMorgan Chase, Allen & Co. and UBS are leading the offering.

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