From investor euphoria to market uncertainty: the case of Farfetch

Abstract

The following case study, subdivided into two parts, serves the purpose of performing an in depth analysis of Farfetch’s complex journey towards an IPO and subsequent performance. The first part dates to September 2018, and explores the IPO’s key decision-making processes. Elements such as an analysis of Farfetch's pre-IPO financial health, an assessment of the dual class structure implications on the transition to a public firm and a discussion of the motivation and risks involved were included. The second part moves forward to October 2023, delving into topics such as the company’s recent decreasing valuation and the option to delist.