The company said up to 5% of the shares sold in its IPO will be set aside for individual investors. That will allow Etsy users and others to participate in the offering, kansascity.com reports.
Matt Kennedy, an analyst for IPO ETF manager Renaissance Capital and cited by the source, said companies can set aside shares for retail investors to build engagement with their users and to reflect their culture. He noted that Etsy is built around communities and by setting aside some shares for their users, they can counter the perception that the IPO primarily benefits the company and a few large investment firms.
Etsy was founded in June 2005 as a marketplace for handmade goods and craft supplies. Originally called Indieco, it changed its name in 2006. It generated USD 1.93 billion in gross sales in 2014, posting USD 195.6 million in revenue, up 56% from 2013. Estsy said almost 20 million people made at least one purchase through its website in 2014. Its losses rose to USD 15.2 million in 2014 from USD 800,000 in 2013. Etsy plans to list its shares on Nasdaq under the ticker symbol “ETSY.”
Every day we send out a free e-mail with the most important headlines of the last 24 hours.
Subscribe now