ThredUp stock jumps as shares begin trading

ThredUp stock jumps as shares begin trading

Sales of used clothing are booming online, ThredUp CEO James Reinhart told CNBC's Squawk Alley on Friday just before the company's shares began trading in the Nasdaq Global Select Market.

The company late Thursday announced the pricing of its initial public offering of its Class A common stock at $14 a share, on the high side of estimates, and sold 12 million shares to raise $168 million.

Shares jumped nearly 30% in initial trading on Friday.

"I think this is a category that's big, it's getting bigger," Reinhart told CNBC.

Nine banks, led by Goldman Sachs, Morgan Stanley and Barclays are participating in the deal.

Based in Oakland, Calif., ThredUp is an online resale marketplace where consumers can buy and sell secondhand clothing, shoes and accessories. The website features about 2.4 million listings from over 35,000 brands at any given time.

The secondhand market is estimated to be worth $28 billion, according to ThredUp's annual report. The company expects it to increase to $64 billion by 2024 as more consumers shift to used clothing due to environmental concerns from fast fashion. The Coronavirus pandemic has also driven growth as consumers look to save and earn money by buying fashion at lower prices or selling clothing on