Etsy is now valued at around $1.78 billion

Etsy’s initial public offering has been priced at $16 per share, a market source told Reuters, valuing the online retailer of handmade goods and craft supplies at about $1.78 billion. The New York-based company’s IPO raised about $266.66 million at that price, the top end of its expected range of $14-$16 per share. Etsy is offering 13.33 million shares, while 3.33 million shares are being sold by shareholders, including venture capital firm Accel Partners. The company, which has 29 million items listed on its website, charges a 20-cent listing fee for each item and a 3.5 percent fee for each completed sale. Etsy, which had 1.4 million active sellers and 19.8 million active buyers as of December, also earns from its advertising platform, payment processing and shipping labels. Besides Accel Partners, the company’s major investors include Index Ventures, Union Square Ventures and investment firm Tiger Global Management. Accel Partners’ stake fell to 22.4 percent from 27 percent after the offering, while Union Square’s stake dropped to 12.6 percent from 15.2 percent.