Online shopping marketplace Etsy is scheduled to debut on the stock market Thursday after raising $267 million in the technology industry's third major initial public offering of stock this year.
Etsy announced Wednesday afternoon that it has finalized its IPO price at $16 a share, the upper limit of a predicted range. The price values the company at $1.78 billion.
Etsy’s arrival on Nasdaq is being closely followed in the tech world for a number of reasons. The decision to go public has led to fresh scrutiny about whether the trinkets, clothing and other craft goods that people sell on Etsy are truly homemade. The small-scale approach has been Etsy’s crucial separator from EBay,
Tech IPOs have also slowed down compared with a booming 2014 that included the stock market debuts of
Etsy's revenue came in at $196 million in 2014, more than doubling from $75 million in 2012. But it's still not profitable. The net loss was $15 million in 2014.
The offering also includes a unique element: Etsy set aside 5% of shares for sale to its users and other individuals.
The other closely followed tech IPOs this year have been for online storage company Box and website services firm GoDaddy.