By Jonathan Davies

Shares in online art-craft marketplace Etsy place surged 88% on its stock market debut, valuing the business at $3.3 billion (£2.2bn).

Etsy yesterday set its share price at $16 ahead of its listing, which would've valued the company at around $1.8bn.

Before the listing took place, Etsy also warned that it may never be profitable. But its boss Chad Dickerson said that the investors who bought shares on its stock market debut understood the company's ethos to focus on not just profits.

In a blog post, Mr Dickerson said: "The investors we met on the roadshow understand that the key to Etsy's long-term success is building on and extending what has made Etsy successful to date: an inspired community of creative entrepreneurs, buyers who want to buy unique merchandise that they can't find anywhere else, and a values-led community-based business that focuses on the long term."