Starting today, Wish will trade on the Nasdaq stock exchange under the symbol “WISH”.
San Francisco-based e-commerce company Wish has raised $1.1 billion in an Initial Public Offering (IPO). The company offered 46 million shares at $24 per each, which is the highest end of the range of $22 to $24. According to Bloomberg, the pricing brings Wish valuation to as much as $17.1 billion on a fully diluted basis.
The IPO gives WIsh parent company ContextLogic a market capitalization of $14.1 billion. Starting today, Wish will trade on the Nasdaq stock exchange under the symbol “WISH”. Among the major Wish investors, there were Yuri Milner’s DST Global, Peter Thiel’s Founders Fund, Formation 8 Partners, GGV Capital, and private equity firm General Atlantic. Goldman Sachs Group Inc (NYSE: GS), JPMorgan Chase & Co (NYSE: JPM), BofA Securities, Citigroup Inc (NYSE: C), Deutsche Bank AG (NYSE: DB), UBS Investment Bank (NYSE: UBS), RBC Capital Markets, and Credit Suisse Group AG (NYSE: CS) were underwriters of the listing.
Notably, Wish IPO is the 31st offering on the US exchange to exceed $1 billion this year. It follows last week’s trading debut of delivery platform DoorDash Inc (NYSE: DASH) that soared 86% after the $3.14 billion offer. Besides, it competes with the vacation rental company Airbnb Inc (NASDAQ: ABNB) that closed its first day up 113% after a $3.83 billion IPO.
Wish before Its IPO
Founded in 2010 by former Google executive Peter Szulczewski and Yahoo veteran Danny Zhang, Wish is an online e-commerce platform that facilitates transactions between sellers and buyers. Founded in 2010 by former Google LLC (NASDAQ: ) (NASDAQ: GOOG) executive Peter Szulczewski and Yahoo veteran Danny Zhang, Wish offers a variety of goods, including clothing, consumer electronics, and accessories. The company has more than 100 million monthly active users worldwide. According to Wish, it sells about 2 million products daily. Wish serves customers in the United States and India. Notably, the Wish app ranks in the top 10 shopping and lifestyle apps on Android and iOS app stores.
For nine months that ended in September, Wish reported revenue of $1.7 billion, which is 32% up from $1.3 billion last year. The surge resulted from an increase in online shopping due to stay-at-home orders. However, the company also suffered losses. In comparison with $5 million losses in 2019, they widened to $176 million.
Previously, Wish was criticized for listing poor quality or counterfeit goods. Such complaints are quite common for all e-commerce sites. Besides, customers complained about the lack of communication from sellers and quality. To handle the problem, Szulczewski hired Connie Chang to organize a community of about 10,000 Wish users to expose unsatisfactory dealers in exchange for free goods and discounts.
Daria is an economic student interested in the development of modern technologies. She is eager to know as much as possible about cryptos as she believes they can change our view on finance and the world in general.