Many investors are eagerly awaiting Depop's IPO. Depop is a mobile application where users can buy and sell fashionable clothing and accessories from both major and small brands.
The company's key competition includes ThredUp, The RealReal, and Poshmark.
- Detailed instructions how to participate in Depop (pre-IPO, offering price) see below👇
What is an IPO and how it works
IPO is a process of offering shares of a private corporation to the public in a new stock issuance. Why go public? The primary benefit of going public is easier access to capital.
To go public, a company must have a track record of growth and other favorable results and hire an investment bank to come in and underwrite the IPO. The underwriters also performed due diligence and verified financial information and business model.
Once the paperwork done, the company sells the stock to institutional investors. When the initial block of shares has been sold, the company with underwriters' help sets an initial price and date for the stock to begin trading on a stock exchange.
Company Profile and Financial Indicators before Depop IPO
Founded in 2011 in London, the company has offices in the UK (Manchester), the US (New York, Los Angeles), and Australia. This is the only European startup that is included into the top 25 shopping apps in terms of daily active users. Overall, the platform has 21M registered users from 147 countries.
Since its inception, Depop has raised $105.60M in 7 rounds from 12 investors. The company's earnings in 2020 amounted to $70M, which is twice as much as in 2019. The company is currently being acquired by Etsy, the largest online marketplace for buying and selling handicrafts; the deal amounts to $1.60B. After the acquisition, Depops will remain an independent platform and retain its headquarters in London.
According to Depop's data, the fashion resale market in the US alone may rise to $64B by 2024, with 39% growth per year; this provides excellent market opportunities for the company. According to Shopify, the fashion e-commerce market could grow from $531.25B in 2019 to $672.71B in 2023. Currently, in the US alone, 29.50% of all fashion items sales are online.
How to Buy Depop Stocks Before the IPO (Offering Price)
In the past, IPOs as highly profitable investments were available only to the privileged customers of the leading brokerage firms and it was challenging for retail investors to gain access. You couldn't buy shares paying the price set by the company and you had to wait until the shares actually start trading on the public stock market at whatever stock price supply and demand allows.
Technologies and marketplaces changed the rules of the game, now regular investors can get pre-IPO shares. To participate in Depop IPO you need to use an IPO investing app like Freedom Finance (NASDAQ: FRHC), TD Ameritrade or Fidelity. They give its customers access to IPOs and secondary offerings through their existing brokerage account. Also you can buy Depop shares when the company goes public via a commission-free trading app like eToro.
🚨 Detailed Instructions How to Participate in the Depop IPO before public trading:
Below we share the instruction how to participate in the approaching Depop IPO using Freedom Finance (Freedom24 platform). This marketplace is chosen as an example because Depop is already listed there.
🎁 Special limited time offer for European Union citizens or residents aged at least 25 years - you will get a free share if you now open a new account through this link. The value of a stock that you will receive in your account may vary in the range of USD $600, with companies like Netflix, Ford, Microsoft etc.
*** Freedom Finance services are NOT available to US citizens and residents.
- Apply for a Freedom Finance account — you need to prepare your identity document and a document confirming the address of residence (utility bill). The verification process is very fast, it will take 2 minutes to create your account.
- Deposit your account — to participate in an IPO, your account must have available funds in the amount you send IPO application for.
- 💡 Tip: It's recommended to deposit your account in advance. Often the exact IPO date is undefined until the last day. You may have a short notice for participation and account deposits also takes time for processing. Also, sometimes Freedom sends last-minute IPO offer when you have 2 hours to participate.
- Submit a request to participate in the IPO — when applications are open select Depop and click Participate in the IPO > input the amount you want to invest > Send your application. Note: Before the book closing, a request can be withdrawn. At the time of the book closing, 1 day before the start of the exchange trading, the specified amount will be blocked on the account.
- Wait for allocation — The actual number of stocks purchased during an IPO depends on supply and demand. The higher underwriter reserves the right to partial execution of collective applications. So if the demand is high you may get less than you applied for. Of course, you will only pay for the shares purchased. The rest of the funds will be returned to your account.
- Start of trading — With the beginning of the public trading on the stock exchange, the purchased shares will appear on the account and a lock-up period will start — a 93-day period of prohibition on sale. You can’t sell stocks, but you can track their current value and growth indicators in your personal member area and a trading terminal.
- Closing your trade — At the end of the 93 days lock-up period, you will be able to manage your stocks at your discretion — leave in the portfolio or sell and withdraw money or transfer the stocks to another depository/ broker in your name. This can be done in your account by clicking the ‘Sell’ button next to the name of the security. In this case, a commission of 0.5% of the amount of the sale transaction is charged.
Is investing in IPOs profitable?
Not always. The average return at the end of the lock-up period is 72%, past IPOs data.
When is the Depop IPO date?
Depop's IPO date is not defined yet. We will update when the exact Depop date IPO is known – if you want to get notified please subscribe for updates here.
What is Depop IPO price range?
Depop IPO price range is not defined yet. We will update when the Depop IPO offering price is known – if you want to get notified please subscribe for updates here.
How to Invest in Depop after the IPO date (opening price)?
After the IPO you can buy Depop stocks via Freedom24. Or if you're from the US use a commission-free trading app like eToro on the first trading day.
What is the Depop (stock symbol)
The stock ticker for Depop is unknown yet.
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