Rent the Runway debuts with $1.7 billion valuation

Fashion company Rent the Runway on Wednesday became the latest consumer-facing business to make a Wall Street debut.

Opening nearly 10% above their initial public offering price, giving it a starting valuation of $1.7 billion.

The company’s site allows women to rent and shop secondhand clothes and accessories such as handbags and jewelry from more than 750 designer brands.

Driving up demand for secondhand goods and rental services - consumers conscious of reducing clothing and environmental waste.

High demand for its apparel rental model has helped the company cut trim its net loss to $84.7 million in the six months ended July 31, from $88 million a year earlier.

Amid a surge in demand in recent months, several consumer-facing businesses including eyewear company Warby Parker and Roger Federer-backed shoemaker On Holding AG have had strong market debuts.

But Brooklyn, New York-based Rent the Runway stumbled by the close.

It ended below its $21 IPO price - with a drop of 8 percent.