Business

Etsy share price set at $16 but firm warns it may never be profitable

Etsy motto on wall Image copyright Etsy
Image caption Etsy's motto is "buy good things from real people"

Etsy, the Brooklyn-based online crafts marketplace, has priced its shares at $16, ahead of its stock debut in the US on Thursday.

But Etsy has warned its future as a public company may not be profitable.

In a public filing it said its business was subject to "numerous risks" including a history of operating losses.

The share price values the firm at $1.8bn (£1.2bn). It will start trading on the Nasdaq under the symbol ETSY.

"We may not achieve or maintain profitability in the future [and] our quarterly operating results may fluctuate, which could cause our stock price to decline," the firm said.

Founded a decade ago, Etsy is an art-focused marketplace where crafters can sell their wares to like-minded buyers.

Its motto is 'buy good things from real people' and its business values include a focus on long-term sustainability.

Some 1.4 million Etsy sellers together have sold a combined $1.9bn (£1.3bn) worth of knit caps, tables, and other handmade and antique goods to almost 20 million buyers globally.

But the firm has noted that it faces "intense competition" and that it may not be able to compete effectively.

"Adherence to our values ... may negatively influence our short- or medium-term financial performance," the firm said.

The stock offering is expected to close on 21 April and Etsy has said it will set aside a stock participation program for its sellers.

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