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.
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.
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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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.
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.