Poshmark Set to Join IPO Boom [Video]

Poshmark Inc., the online marketplace for secondhand goods, will start trading Thursday, the latest e-commerce site to tap the buoyant initial public offering market as the coronavirus pandemic continues to squeeze bricks-and-mortar stores.

Poshmark said it priced its IPO at $42 a share, giving the company an initial valuation of more than $3 billion. The shares priced above the target range of $35 to $39. The business was valued at $1.25 billion in 2019. Poshmark declined to comment, citing a regulatory quiet period ahead of its IPO.

A number of digital marketplaces, including Poshmark, reported more people selling goods in spring 2020 as a way to generate extra income and stave off boredom during widespread lockdowns. Poshmark sellers list everything from $17 reusable Starbucks cups to $3,000 Louis Vuitton handbags. While many traditional apparel companies struggled to survive, Poshmark was profitable for the first time in its 10-year history in the quarter ended June 30.

The company, based in Redwood City, Calif., follows ContextLogic Inc., the …