We’ve discussed Etsy’s upcoming IPO before, back when market analysts predicted Etsy would try to raise $300 million for its initial debut. Since the handmade marketplace goes public tomorrow, here’s a quick refresher of all the facts you need to know (including the new debut price).
How much will they raise: Though Etsy was rumored to go for an aggressive $300 million, they are now likely looking to raise $250 million.
What’s the valuation: Analysts have determined that Etsy is worth roughly $1.8 billion.
How do they stack up against similar tech IPOs: This year, two other technology companies debuted publicly, with offerings that exceed Etsy’s projected $250 million. Innovation Holdings Inc. and GoDaddy Inc. filed IPOs this year as well, with each company being valued at $3.4 billion and $3 billion respectively.
How many shares will they offer: 16.7 million.
How much will shares cost: Shares are estimated to debut at $14 to $16.
Need to know why shares are so low? According to an earlier interview with NPR, Etsy wants to stay as closely aligned with its shop owners whenever possible – now, and after the IPO. The crafting marketplace states in their filing with the SEC that the handmade community is “the heart and soul of Etsy.” Etsy ran a preliminary program before trading begins on Thursday that allowed “its vendors and other small investors […] to buy as much as $2,500 in Etsy stock.” This program, overseen by Morgan Stanley, allows small investors to purchase stock, with options to spend $100 in shares and up to $2,500. These investors and vendors are not the typical Morgan Stanley customer, who is at least affluent, if not exorbitantly wealthy. Traditional fees associated with these kinds of programs were waived, further lowering the barrier to entry for shop owners that wanted to claim a portion of the company for themselves. Jeni Sandberg, an Etsy shop owner, shared with the Wall Street Journal the novelty of this opportunity. “You’re always told, ‘You can’t participate. You’re not part of a financial syndicate. Go away, little person,’” she said.
By keeping shares low, the Etsy community – the small and medium businesses flourishing on the marketplace – can continue to be an integral component of the growth of the company, and Etsy will maintain its community based integrity. This makes for a very interesting (and in our opinion, smart) move for Etsy as it continues to solidify its brand by staying as close to its customers’ hearts as possible, in all aspects of the company’s dealings – way to go, Etsy. As it states in the SEC filing document, Etsy likes to “keep it real, always.”
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