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

(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 (NASDAQ:) and online resale shop ThredUp.

Goldman Sachs & Co (NYSE:), Morgan Stanley (NYSE:) and Barclays (LON:) 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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