Luxury online marketplace Farfetch has filed for an initial public offering or IPO to list its shares in the U.S.
Farfetch has filed a F-1 registration statement with the U.S. Securities and Exchange Commission. The London-based company plans to list its shares on the New York Stock Exchange under the ticker 'FTCH.' Media reports indicate that IPO could value the company at up to $5 billion.
According to Farfetch, its mission is to be the global technology platform for luxury fashion, connecting creators, curators and consumers. The global market for personal luxury goods was estimated to be worth $307 billion in 2017 and is expected to reach $446 billion by 2025, according to Bain & Co.
Farfetch said it intends to use the net proceeds from this offering and the concurrent private placement for working capital, to fund growth and other general corporate purposes, including possible acquisitions.
Founded in 2007 by Portuguese entrepreneur Jose Neves, Farfetch sells designer clothing online from companies including established brands like Gucci and Burberry. Farfetch Marketplace is the first and largest application built on the company's platform and is currently the source of over 90 percent of its revenue.
As of June 30, 2018, the Farfetch Marketplace connected over 2.3 million Marketplace consumers in 190 countries to over 980 luxury sellers. The company has offices in eleven cities, including Tokyo, London and Los Angeles.
As of December 31, 2017, the company had 935,772 active consumers, up 43.6 percent from the prior year.
For the first six months of this year, Farfetch's loss after tax widened to $68.41 million from $29.28 million in the year-ago period. Revenue for the period grew to $267.51 million from $172.57 million last year.
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