Luxury goods online hub Farfetch targets US$885 million from IPO
London-based firm and investor hope to sell 44.2 million shares for US$20 – above marketed range – in Friday’s trading on New York Stock Exchange
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.
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.