Summary
- Poshmark has filed proposed terms for its $244 million IPO.
- The firm operates an online marketplace connecting buyers and sellers of apparel and related accessories.
- POSH has performed well during the COVID-19 pandemic, but the IPO appears priced at a high premium to the direct competitors, so I'll watch list the stock.
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Quick Take
Poshmark (POSH) has filed to raise $244 million from the sale of its Class A stock in an IPO, according to an amended registration statement.
The company provides an online marketplace for the sale of clothing and related accessories.
POSH has performed well during the Covid-19 pandemic but the IPO is priced for perfection.
I'm Neutral on the IPO due to excessive valuation at its proposed midpoint price of $37.00 per share.
Interested investors may wish to watch list the stock for a potentially lower entry point post-IPO.
Company & Technology
Redwood City, California-based Poshmark was founded to create a marketplace for the sale of new and used apparel, accessories and other products.
The site acts as a form of social commerce, encouraging users to connect with each other in a safe manner.
Management is headed by co-founder, president and CEO Manish Chandra, who was previously co-founder of Kaboodle, an online shopping website acquired by Hearst Communications.
Below is a brief overview video of how to start selling on Poshmark from a site user:
