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The RealReal Prices IPO Above Range, Raising $300M

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.

Precisely.

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 PartnersCanaan PartnersPWP Growth EquityInterWest PartnersGreycroftE.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.

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