Photograph by Mark Ovaska — Bloomberg via Getty Images
By Benjamin Snyder
April 10, 2015

Online marketplace Etsy is taking steps to increase the number of small investors who will be able to buy stock when the company goes public, the Wall Street Journal reports, a handcrafted way to launch an IPO for a company that prides itself on what it calls “socially responsible business practices.”

The Brooklyn-based company is limiting retail investors to just $2,500 of stock. That should mean a larger-than-usual number of retail investors will take part in the IPO, though a handful of major shareholders will get comparatively bigger pieces of the pie.

The Journal notes it’s difficult to tell how this structure will affect Etsy’s public offering:

It is unclear how this will affect trading. Some wealthy investors may choose to sell their shares immediately for a profit because their investment represents a relatively small dollar amount. But individuals, like Etsy sellers who aren’t frequent investors, may be far less likely to trade than typical retail investors.

Etsy hopes to raise $267 million through its offering, which would value the company at $1.8 billion. The company plans to be traded on the public market next week.

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