Wayfair last night said it would offer 11 million shares at $29 a share — higher than the $25 to $28 range it had set in regulatory filings — in a deal that will raise $319 million.
Wayfair is not making money, however. It lost $51.4 million in the first half of the year, after a 2013 loss of $15.5 million, primarily due to increased advertising spending. And those losses are expected to persist for a couple of years.
“This is the dark side,” said Rett Wallace, co-founder of Triton Research, a financial data and intelligence firm. “It’s not clear that they can ever be profitable.”
