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Online crafts marketplace Etsy priced its initial public offering at $16 a share on Wednesday, at the high end of its expected range of $14 to $16 a share.
The Brooklyn, NY-based company raised $267 million by selling 16.7 million shares, valuing Etsy at $1.8 billion, the firm announced Wednesday. Etsy is expected to begin trading on the Nasdaq stock exchange Thursday under the symbol “ETSY.”
Founded in 2005, the website derives its revenue from listing fees and commissions on the sale of items such as handmade jewelry, crocheted wool booties and antique mother of pearl silverware. Etsy’s move is part of a recent resurgence in IPOs that has included the likes of Chinese e-tailer Alibaba and data-storage service Box.
The site currently has 54 million members, 1.4 million sellers and 19.8 million buyers, according to a filing last month with the US Securities and Exchange Commission.
Etsy reported a net loss of $15.2 million on $196 million in revenue last year, a 56 percent increase over the previous year, according to last month’s company’s filing. It also recorded $1.93 billion in gross merchandise sales last year.
Etsy said it would use the proceeds of the IPO for working capital and corporate investments, including marketing to attract new members, developing localized services and developing relationships with third-party service providers.
The IPO is being led by Goldman Sachs Group, Morgan Stanley and Allen & Co.
