Etsy Inc (NASDAQ:ETSY), a decade-old website founded by a carpenter touched almost double of its opening price on debut after raising $267 million in an IPO. As per the reports, the primary objective of its founder was to sell woods when he launched it around 10 years ago. But today it has become one of the largest marketplaces in the country to sell handmade and vintage goods.
Insights On The Matter:
Etsy Inc (NASDAQ:ETSY) opened 93% higher at $31 on the first day in New York. The company and some of its backers sold close to 16.7 million shares for $16 per unit. Another IPO that has increased the temperature of the stock market is of Virtu Financial Inc., which is considered as one of the sought-after options to give a shot. Etsy is not as large platform as some of the others in the country, but still it makes a reasonable amount of profit by charging commission and listing fees from sellers. Some of the products available on Etsy are 1960 metal typewriter for $85 and knit coffee warmer for $6.50.
Even though Etsy has been offering excellent services over the past ten years, but now it has become public; hence, its challenges will increase. The biggest challenge that will pop up now in front of the company will be to keep all the craft makers and artisans happy as well as look forward to new opportunities to build investor base. It is the first IPO given to a B Corporation; a distinct standard given to businesses that meet all the standards concerning environmental and social performance.
All the funds will be used to invest in for the growth and expansion of the business, except for $300,000 that will be invested in a non-profit entity called Etsy.org. As per the reports, it will work for educating women and various minorities about creating their own businesses.