Adds IPO details, company background
Oct 27 (Reuters) – Fashion company Rent the Runway RENT.O gained a valuation of $1.7 billion after its shares opened nearly 10% above their initial offering price on Wednesday, becoming the latest consumer-facing business to ace its market debut in the United States.
Shares of the Brooklyn, New York-based company opened at $23, up from its IPO price of $21 each.
Rent the Runway sold 17 million shares to raise $357 million in its upsized share sale, which was priced at the top end of its initial range of $18 to $21.
Several consumer-facing businesses including eyewear company Warby Parker WRBY.N and Roger Federer-backed shoemaker On Holding AG ONON.N have had strong market debuts in recent months, while others like sneaker maker Allbirds are looking to capitalize on the easy money conditions that have fueled a bullish run for the U.S. IPO market.
“Women didn’t have to return to the office in order to return to Rent the Runway,” Rent the Runway co-founder and Chief Executive Officer Jennifer Hyman said in an interview with Reuters.
Hyman added that changes in subscription plans to make them more personalized for users resulted in higher loyalty and increased margins.
Goldman Sachs & Co, Morgan Stanley and Barclays are the lead underwriters for the offering.
(Reporting by Niket Nishant in Bengaluru; Editing by Maju Samuel)
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