Rent the Runway closed its first day of trading with shares below the initial IPO price.
The fashion rental platform began trading on Wednesday at $23 per share, which was above its initial IPO price of $21 per share. Shares closed at $19.29 each on Wednesday and were as low as $19.00 on Thursday morning.
Rent the Runway sold 17 million shares on Tuesday for $21 each, raising a total of $357 million in its IPO. On Wednesday, the company began trading on The Nasdaq Global Select Market under the ticker symbol “RENT.”
Rent the Runway was founded in 2009 as a fashion rental service and recently began selling all products on its website, according to reports, in addition to offering them for rent. The company said in a July release that it “confidentially submitted a draft registration statement on Form S-1 with the Securities and Exchange Commission relating to the proposed initial public offering of its Class A common stock.”
With the secondhand market set to more than double in size to $77 billion over the next five years, more circular fashion platforms are heading to the public markets.
Poshmark made its market debut in January and raised $277 million after selling 6.6 million shares priced at $42 apiece. ThredUp raised $168 million in its initial public offering in March and earned a valuation of roughly $1.3 billion.