E-commerce marketplace Farfetch, which is based in the UK and specialises in luxury brands and high-end fashion, today filed an intention to list on the New York Stock Exchange.
No details were given on the amount it expects to raise or the offer price per share, however analytics firm Pitchbook valued the listing to take in as much as $8.4bn (£6.6bn) after going public.
The app’s founder Jose Neves is hoping to capitalise on the expanding e-commerce industry, in which the luxury retail sector remains “in its infancy”. Just nine per cent of all luxury sales in 2017 were conducted online according to consultancy Bain, compared to recent trends in the UK which saw online retail overtake physical stores in sales this summer.
Farfetch runs an online marketplace for brands such as Chanel and Burberry, opting to not hold the stock itself and instead provide an e-commerce vehicle for the sector. The business has yet to turn a profit, as the filing revealed losses of $68m in the first six months of the year. In 2017, Farfetch’s revenue grew 59 per cent to $386m.
Chinese e-commerce giant JD.com invested $397m in Farfetch last year, and has agreed to buy more shares in order to maintain its undisclosed stake after listing.
Goldman Sachs, JP Morgan, Allen & Co, UBS, Credit Suisse, Deutsche Bank, Wells Fargo, Cowen and BNP Paribas will underwrite the listing.
The news comes amid a competitive year in the sector, after Farfetch’s most direct rival Yoox Net-a-porter exited the Italian stock market in May. It was acquired by Cartier parent Richemont for €5.3bn (£4.8bn). Other competitors include Matchesfashion and Mytheresa.