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Fashion firm Rent the Runway aims for nearly $1.3 billion valuation in U.S. IPO By Reuters

by Mike Robinson

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© Reuters. FILE PHOTO – A woman inspects clothes in the Rent The Runway shop, which allows women to rent designer dresses and accessories online. This was September 12, 2019, New York City. Picture taken September 12, 2019. REUTERS/Shannon

(Reuters] Rent the Runway aims for a valuation in excess of $1.3B in the United States initial public offering. This is as the company seeks to capitalize on the increasing demand for pre-owned clothing.

Rent the Runway was founded in 2009. It allows users to rent clothing and buy secondhand accessories, such as jewelry, in more than 18,000 styles.

According to a filing, the company intends to raise $315 million by selling 15 million shares at $18.00 to $21.00 per share.

The Brooklyn-based firm, which is headquartered in New York, disclosed earlier this month a nearly 39% decline in revenues for 2020.

In the second half of the fiscal year, the company saw a drop in top line revenue. This was reflected by a 9% decrease in revenues for the quarter ended July 31.

However, demand for second-hand clothing has increased in recent months due to customers becoming more conscious of their carbon footprint. This is driving revenues at the styling service. Stitch Fix ThredUp, an online resale site (NASDAQ:).

Goldman Sachs & Co (NYSE:), Morgan Stanley (NYSE: Barclays The lead underwriters are (LON) Rent the Runway’s stock will be listed on the Nasdaq as “RENT”

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