Eyeglass model Warby Parker was valued at greater than $6bn after it accomplished a direct itemizing in New York on Wednesday, greater than double its price throughout a latest non-public fundraising spherical.

A direct itemizing permits traders to start buying and selling shares on an alternate with out the corporate itself elevating any cash. Warby Parker is the primary consumer-goods enterprise and the primary public profit company — which means it has a authorized requirement to stability the pursuits of shareholders and different stakeholders — to pursue such a list within the US.

The corporate’s shares opened at $54.05 on the New York Inventory Change Wednesday afternoon, in contrast with the $24.53 worth paid in a fundraising spherical final August and in a young provide as lately as April.

The robust begin highlighted the continued investor appetite for fast-growing corporations regardless of latest jitters within the broader inventory market. Greater than 300 corporations have listed within the US this 12 months, not together with particular objective acquisition corporations — over twice as many as within the first three quarters of 2020.

Neil Blumenthal, Warby Parker co-chief govt, mentioned changing into public would offer “publicity” to assist entice extra prospects and employees, however added: “We really feel nice about our stability sheet and didn’t assume it made sense to tackle the pointless dilution” of a conventional IPO.

He mentioned a direct itemizing was “a extra clear, inclusive and honest course of that allows us to have interaction with a broader group of traders . . . with out pointless intermediaries”.

The 11-year-old New York-based firm began life promoting glasses on to customers on-line, however now has a community of greater than 100 bodily shops and plans so as to add extra. Executives additionally hope to construct nascent companies involved lenses and eye exams.

Warby Parker, named after two characters in a Jack Kerouac journal, reported a web lack of $56m in 2020 on revenues of $394m.

Direct listings have slowly gathered steam as a substitute for conventional IPOs because the music streaming service Spotify was the primary to take the route within the US in 2018. Warby Parker’s deal, following swiftly on from the itemizing of knowledge analytics specialist Amplitude on Tuesday, brings the tally for 2021 to 6, as many as had listed within the earlier three years.

Going public by means of direct itemizing is cheaper for corporations than a conventional IPO, and supporters resembling Invoice Gurley of enterprise capital agency Benchmark have mentioned they supply a extra environment friendly methodology of deciding the suitable preliminary share worth.

Nevertheless, bankers and different consultants stress they’re solely appropriate for a small variety of corporations which have raised a number of capital and have a high-enough profile to curiosity traders.

Because of this, they’ve been dominated by enterprise capital-backed tech corporations. Warby Parker had beforehand raised greater than $500m from traders together with Tiger World, T Rowe Worth and General Catalyst.

“There will likely be house for direct listings [in future], however it’s not going to take over the IPO market,” Reena Aggarwal, a professor at Georgetown College and an skilled in public listings.

She mentioned the dearth of a conventional bank-led gross sales course of in direct listings may make them notably weak in a market downturn.

“When there’s a correction — and in some unspecified time in the future that may occur — you then’ll want extra effort promoting a [listing] than you want at the moment,” Aggarwal mentioned. “Right this moment, there’s some huge cash chasing offers.”