Morning Markets: Luxury goods seller TheRealReal priced its IPO above range yesterday, extending a strong IPO cycle.
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Uber closed above its IPO price yesterday, marking a return to form for the former darling of the technology and startup communities. After an IPO that featured lower-than-expected pricing and immediate value deletion, Uber clawing its way into the black could indicate that even 2019’s more troubled IPOs are finding favor with yet growth-hungry investors.
The RealReal’s IPO pricing echoes the point. The luxury goods player priced its IPO above-range yesterday, landing at $20 per share, ahead of a $17 to $19 per-share range. Putting a sticker price on your shares above their indicated range isn’t unheard of — indeed, in strong markets, it can be a regular part of the IPO game — but it does mark a hot company, a hungry market, or both.
For The RealReal, the $20 per-share price put $300 million into its coffers from its 15 million shares sold. The final amount raised is right on target. As Crunchbase News wrote concerning this IPO earlier in June:
The firm will likely raise in the hundreds of millions, but less than $500 million.
The firm, which raised a touch under $300 million during its life as a private company (as reported, this includes “a $115 million Series G raised in July 2018,” including money from “Great Hill Partners, Canaan Partners, PWP Growth Equity, InterWest Partners, Greycroft, E.ventures and Greenspring Associates.”) will begin trading this morning under the ticker symbol “REAL.”
Finally, at $20 per share, The RealReal is worth around $1.7 billion. We’ll have a smidge more when it opens, and begins to trade. For now, this is yet another IPO that is in the books for the 2019 class.
Illustration: Li-Anne Dias.