IPO: Farfetch fetches further flair for fantastic finesse

For Farfetch (FTCH), this Friday was a dream debut as the online luxury retailer saw itself valued at a whopping $5.8 billion. This also underlines how e-commerce has taken over the traditional retail methods – an undeniable truth that Amazon (AMZN) is proving time and again.

It needs to be noted that the 10-year old Farfetch site is home to a number of international high-end brands but carries no inventory — something the internet has gifted us.

On the NYSE on Friday, Farfetch shares were trading as high as 39% more than its IPO price at $20 a share. This was after the company raised its expected IPO price from the $17-$19 range.

With the IPO, the company looks to issue 33.6 million shares, with existing stockholders selling about 10.6 million. The IPO, thus, values the company at $5.8 billion. Including employee share options, this can be estimated to rise to $6.3 billion.

However, it would be amusing to note that Farfetch has yet to turn to profit, even as it posted a 59% jump in top line to $386 million the past year.