What happened Shares of ThredUp (NASDAQ: TDUP) were soaring 12.3% in morning trading Thursday after the online secondhand clothing retailer priced a secondary offering of 6.4 million shares at $24.25 per share, even though that was below yesterday's closing price of $24.51 per share. So what ThredUp is issuing 2 million new shares while insiders are selling 4.4 million shares. Gross proceeds are estimated to be $48.5 million and will be used for working capital, general corporate purposes, and to fund the online retailer's growth strategies. An additional 960,000 shares can be purchased by the offering's underwriters within 30 days. Image source: Getty Images. ThredUp had roughly 18.7 million shares outstanding at last count, which suggests the new shares being issued would dilute existing shareholders by about 2%. Typically, secondary offerings where the stock is discounted as they were in this case, with ThredUp giving buyers a 6% discount, don't usually lead its stock to spike in value. Yet earlier this week ThredUp's stock had been trading at around $27 a share, and its prospectus estimated at the time the new issue would be priced around $27.50 per share, whereupon the stock tumbled. Essentially the clothing resale leader has made a round trip since then. Now what ThredUp sees the resale retail market growing sharply, and it has been signed by a number of major retail partners to handle their own resale business, including Walmart and Macy's. The proceeds should allow ThredUp to continue investing in its business to handle the additional merchandise that could be needed for its growing list of clients. 10 stocks we like better than ThredUp Inc.When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* They just revealed what they believe are the ten best stocks for investors to buy right now... and ThredUp Inc. wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of June 7, 2021 Rich Duprey has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.Source