Priced Above Range, Farfetch Raises $884 Million in New York IPO

Farfetch debuted on the NYSE under the ticker "FTCH" at $27 per share, $7 above its offering price. An hour later, its shares were trading at $29.13 apiece.

Anna Vodopyanova
    Sep 21, 2018 9:16 AM  PT
Priced Above Range, Farfetch Raises $884 Million in New York IPO
author: Anna Vodopyanova   

Opening $7 above its offering price today on the New York Stock Exchange is Farfetch Ltd., which floated just before noon under the ticker "FTCH" and raised $884 million.

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The pricing of the UK-based luxury fashion platform at $20 per American depositary share was above the expected range of $17 to $19, already revised from the company's earlier filing showing the range of $15 to $17 per share. The company also increased the number of its shares offering to 44.2 million from 37.5 million.

From the preliminary pricing of $100 million estimated in its prospectus filed in August, Farfetch jumped to $637.5 million last week, then to $840 million this week, and floated on Wall Street raising an additional 5 percent on top.

After opening at $27 per ADS Friday morning, shares in Farfetch climbed an additional $2.13 within one hour to $29.13.

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Farfetch debuted on the NYSE $7 above its offering price, then climbed to $29.13 per share within one hour, up 46 percent overall.

(Source: Thomson Reuters Eikon)

Farfetch's deal was underwritten by Goldman Sachs & Co. LLC, J.P. Morgan, Allen & Company LLC, UBS Investment Bank, Wells Fargo Securities, Deutsche Bank Securities, Credit Suisse Group, BNP Paribas, and Cowen Inc.

Chinese e-commerce giant JD.com (Nasdaq: JD) is one of Farfetch's largest shareholders, with its subsidiary, Kadi Group Holding Ltd., holding 14 percent equity in the company. JD's founder, chairman, and chief executive officer, Richard Liu, is one of Farfetch's non-executive directors. 

JD and Farfetch partnered last year when the UK company decided to increase its presence in China. The high-end fashion platform entered China in 2014 and has grown rapidly in Chinese's luxury industry. The company had 186 Farfetchers retail stores in Shanghai and Hong Kong, the company said.

Founded in 2007, Farfetch is one of the world's largest marketplace today for luxury goods. The company had 935,772 active consumers at the end of last year, up nearly 44 percent from a year earlier.

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