Stitch Fix Sinks Back Near Offer Price in Disappointing IPO

  • Online styling service jumps, then falls after downsized offer
  • CEO Lake says company ‘totally motivated’ to prove itself
Stitch Fix Makes Trading Debut After Disappointing IPO
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Stitch Fix Inc. initially soared before sinking back near its offer price in a downsized $120 million initial public offering that fell about a third short of its target.

The online personal-styling service backed by Benchmark jumped almost 24 percent in its trading debut Friday. After then dropping as much as 1.3 percent below the $15 offer price, the shares closed up 1 percent in New York. Before its IPO for 8 million shares, Stitch Fix had marketed up to 10 million of them for $18 to $20.