Leave it to Etsy Inc. to craft an artisanal public offering.
The Brooklyn, N.Y.-based online marketplace for handmade and vintage goods has altered the playbook for its initial public offering, launching an expansive effort to attract small investors and focusing on fewer big investors, according to people familiar with the deal.
But going off script comes with some risk. The moves include limiting the amount of stock retail investors can get in the IPO to $2,500 so more individuals can take part, and concentrating many of the shares among a relatively small number of big holders. The approach could turn off some traders whose presence can help stabilize a stock once it begins trading.
“In the long run, [the IPO process] likely won’t matter to Etsy’s share price,” said Rett Wallace, co-founder of Triton Research LLC. “But it will make some people scream in the short term.”
