Rent the Runway, which rents designer apparel and accessories to women via monthly subscriptions, raised $357 million by offering 17 million shares at $21, the high end of the range of $18 to $21. The company originally planned to offer 15 million shares. At pricing, the company commands a fully diluted market value of $1.5 billion.
Rent the Runway states that it built the world's first and largest shared designer closet ("the Closet in the Cloud") with over 18,000 styles by over 750 designer brands, allowing women to wear whatever they want without having to own it. The company gives customers ongoing access to its "Unlimited Closet" through its Subscription offerings, the ability to rent a-la-carte through its Reserve offering, and the ability to purchase products through its Resale offering. Rent the Runway has served over 2.5 million lifetime customers across all of its offerings and had nearly 127,000 ending total subscribers (active and paused) as of July 31, 2021.
Rent the Runway plans to list on the Nasdaq under the symbol RENT. Goldman Sachs, Morgan Stanley, Barclays, Credit Suisse, Piper Sandler, Wells Fargo Securities, JMP Securities, and KeyBanc Capital Markets acted as lead managers on the deal.
