Vinted, Europe’s largest online marketplace for second-hand clothes, is launching a share sale which values the company at US$5 billion (£3.9 billion).
Investors are said to have been contacted to gauge whether there is interest in a secondary stock offering for Lithuania’s first-ever unicorn, Sky News reports revealed.
A share sale is expected to involve existing stakeholders reducing or offloading their positions in the company.
Should the deal be successful, between £156 million and £390 million worth of Vinted shares could change hands, the report added.
While no new shares will be created, investors and bosses at the group are believed to be hopeful of achieving the US$5 billion valuation.
It comes around three months after the company announced its first-ever annual profit.
Vinted reported a net profit of €18 million during 2023, swinging from a loss of €20 million in 2022.
Sales during the period rallied 61% to €596 million, highlighting the growing demand for used clothes and online shopping.
Rumours of a potential London IPO for Vinted have been in circulation for some time now.
Last year, Vinted’s chief executive officer Thomas Plantenga revealed the company was “technically IPO-ready” but noted it was not viewing going public as a milestone but rather an option on the path to building a lasting business.