Poshmark Inc.’s stock more than doubled in its market debut Thursday, boosted by rising demand for secondhand merchandise and the huge interest in new public offerings.
Other companies also have had strong starts this week. Shares of Petco Health and Wellness Co. began trading Thursday and ended 63% higher than its initial public offering price. The stock for Affirm Holdings Inc., a financial-technology company that helps shoppers pay for online purchases in installments, nearly doubled in its debut Wednesday and added another 18% Thursday.
Private companies have been looking to cash in on booming demand from investors for new listings. Companies raised more than $167 billion on U.S. exchanges last year through Dec. 24, compared with the previous full-year record of almost $108 billion in 1999, during the dot-com boom, according to Dealogic.
Last month, Airbnb Inc. shares more than doubled in their debut, while DoorDash Inc.’s stock gained 86% in the food-delivery company’s first trading session. Some investors have questioned the valuations that technology companies are commanding, saying the high prices suggest that investors are betting on strong growth in the years ahead. Not all newly listed companies have seen their shares jump.
Poshmark describes itself as a social marketplace and works to keep consumers using its platform by making it feel similar to scrolling through social-media operations like Instagram. The company enlists consumers to sell apparel, shoes, beauty items and other merchandise on a digital marketplace, collecting a 20% fee for sales of at least $15 and $2.95 for sales lower than that price, while not buying inventory itself.