Rent the Runway Inc. has unveiled the details of its upcoming initial public offering (IPO), which is generating significant buzz in the fashion industry. The company plans to list on the Nasdaq Global Select Market under the ticker symbol “RENT” and intends to sell around 15 million shares with an expected price range of $18 to $21 per share. If the shares are sold at the higher end of this range, Rent the Runway’s valuation could soar to an impressive $1.3 billion.

To oversee the IPO, Rent the Runway has enlisted the services of leading financial institutions such as Goldman Sachs & Co. LLC, Morgan Stanley & Co. LLC, and Barclays Capital Inc., who will serve as the lead book-running managers. By going public, Rent the Runway is following in the footsteps of other popular fashion resale and rental platforms, including Poshmark, ThredUp, Dr. Martens, and The RealReal, which have all recently embarked on their own IPO journeys.

In its filing with the U.S. Securities and Exchange Commission, Rent the Runway disclosed its financial performance for the fiscal year 2020. The company experienced a significant drop in revenue, with a decrease of 39 percent from $256.9 million to $157.5 million. Furthermore, its net loss expanded to $171.1 million, compared to $153.9 million in the previous year.

Despite the challenges faced in 2020, Rent the Runway remains a major player in the fashion industry. Since its establishment in 2009, the company has solidified its position as a go-to destination for renting clothes and purchasing second-hand items from over 750 renowned designer brands. With a vast inventory of millions of items spanning various categories like evening wear, accessories, workwear, maternity wear, and even home goods, Rent the Runway caters to a diverse range of consumer needs.

The anticipation surrounding Rent the Runway’s IPO stems from the company’s potential to capitalize on the growing demand for sustainable fashion and the evolving preferences of consumers who prefer renting over owning. As the fashion rental market continues to expand, Rent the Runway’s IPO serves as tangible evidence of the sector’s tremendous growth potential. By staying ahead of the curve and showcasing its position as a trailblazer in the field, Rent the Runway is set to further solidify its dominance in the industry.

Helpful links:
1. Rent the Runway Official Website
2. Rent the Runway Stock Information – Nasdaq