Rent the Runway is aiming for a valuation of nearly $1.3 billion in its US initial public offering, as the fashion rental company looks to cash in on the rising interest in pre-owned clothing.

The company, founded in 2009, lets users rent and shop second-hand clothes and accessories such as handbags and jewellery in over 18,000 styles from more than 750 designer brands. It also allows customers to rent and shop home goods.

Rent the Runway plans to sell 15 million shares priced between $18.00 and $21.00 apiece in its IPO, raising $315 million, according to a filing.

Earlier this month, the Brooklyn, New York-based company disclosed a near 39 percent drop in revenue for the fiscal year 2020. Its top line also took a hit in the first half of this fiscal year, with revenue down 9 percent for the period ended July 31.

Rent the Runway said its active subscribers more than doubled to 111,732 in the first nine months of 2021.

Demand for second-hand clothes has jumped in recent months as customers become increasingly conscious about their carbon footprint, boosting revenues at styling service Stitch Fix and online resale shop ThredUp.

Goldman Sachs & Co, Morgan Stanley and Barclays are the lead underwriters for the offering. Rent the Runway will list its stock on the Nasdaq under the symbol “RENT.”

By Noor Zainab Hussain; Editors: Maju Samuel and Subhranshu Sahu.

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