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Funko employees ring the opening bell of the Nasdaq Stock Market. (Photo Via Nasdaq Livestream)

UPDATE: Funko shares dropped approximately 41 percent in the company’s first day of trading. The company set an initial stock price of $12, and shares tumbled to just over $7 by the end of the day.

It’s been a rocky start as a public company this morning for Funko, the Everett, Wash. maker of the popular Pop! figurines.

Funko stock has dipped below $8 per share in early trading Thursday, down 35 percent from the company’s initial stock price of $12. Funko set the price last night, offering more than 10.4 million shares, with a goal of raising $125 million. Underwriters have the option to purchase additional stocks which could push the value of the IPO up to more $143 million.

Funko has scaled back the size of its IPO in recent weeks. Previous filings with the U.S. Securities and Exchange Commission show that Funko eyed raising up to $245 million by selling 13.3 million shares, with 2 million more in underwriter options, at $14 to $16 a piece.

Funko kicked off its new era as a public company by ringing the opening bell of the Nasdaq Stock Market. The geeky retailer, which trades on the Nasdaq Global Select Market under the symbol FNKO, aims to be the “epicenter of pop culture,” appealing to all ends of the fan spectrum.

“Everybody is a fan of something, whether it’s sports, movies, TV, video games, anime or music, everybody has a passion about something,” Funko CEO Brian Mariotti said during the opening bell ceremony. “That’s what we do; we connect fans to their passion.”

Funko debuts as a public company. (Photo Via Nasdaq Livestream)

Funko becomes the second Seattle-area company to go public this year, joining technology-powered real estate brokerage Redfin. Funko is not a tech company, however. It is a top seller of geeky merchandise, and its products are sold through more than 2,000 U.S. retailers. It works with traditional brick-and-mortar sellers like Walmart and Target as well as Amazon.

The 19-year-old company’s recognizable products are the Pop! figures, which encompass everything from star athletes to iconic film and literary characters.

Funko did $426.7 million in net sales in 2016, bringing in a profit of $26.88 million, according to financial records within the IPO documentation. Though the company also revealed that it is carrying $319.1 million in debt, and it needs to continue generating cash flow to make payments. The company has said it will use some of the proceeds from the IPO to pay off debt.

The pop culture heavyweight has been growing extensively in recent years, and it just opened a brand new headquarters in its hometown of Everett. Earlier this year, it acquired London-based Underground Toys Limited, which develops and manufactures merchandise from geeky brands like Star Wars, Marvel, DC Comics, and Doctor Who.

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