Fashion firm Rent the Runway aims for nearly $1.3 billion valuation in U.S. IPO

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(Reuters) – Rent the Runway is aiming for a valuation of nearly $1.3 billion in its U.S. initial public offering, as the fashion rental company looks to cash in on the rising interest in pre-owned clothing.

Rent the Runway, founded in 2009, lets users rent clothes and shop second-hand accessories such as handbags and jewelry in over 18,000 styles from more than 750 designer brands.

The company plans to sell 15 million shares priced between $18.00 and $21.00 apiece in its IPO, raising $315 million, according to a filing.

Earlier this month, the Brooklyn, New York-based company disclosed a near 39% drop in revenue for the fiscal year 2020.

The company’s top-line also took a hit in the first half of this fiscal year, with revenue down 9% for the period ended July 31.

Demand for second-hand clothes, however, has jumped in recent months as customers become increasingly conscious about their carbon footprint, boosting revenues at styling service Stitch Fix and online resale shop ThredUp.

Goldman Sachs & Co, Morgan Stanley and Barclays are the lead underwriters for the offering. Rent the Runway will list its stock on the Nasdaq under the symbol “RENT”.

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