ContextLogic Inc., the parent company of the mobile-focused e-commerce platform Wish, priced its stock for the IPO on Tuesday, $ 24, the top of the proposed offering.
Wish WISH,
expects to sell 46 million shares at that price to raise at least $ 1.1 billion with a market capitalization of more than $ 14 billion. The San Francisco company had previously indicated a targeted price range of $ 22 to $ 24.
The shares are expected to start trading Wednesday morning on the Nasdaq exchange under the ticker symbol “WISH”. Goldman Sachs, JP Morgan and BofA Securities are the leading insurers and have access to an additional 6.9 million shares.
Wish joins a long list of companies that raised at least $ 1 billion in IPOs this year, including Airbnb Inc. ABNB,
and DoorDash Inc. DASH,
last week. The Renaissance IPO ETF IPO,
is up more than 108% so far this year. And the Amplify online Retail ETF IBUY,
has skyrocketed by more than 116% over the period.
See: Wish IPO: 5 Things You Should Know About the Mobile Ecommerce Business
Wish is also going public at a time when shoppers are accelerating their shift to e-commerce during the COVID-19 pandemic. Traditional retailers, including Target Corp. TGT,
and department store stores such as Macy’s Inc. M,
have improved their online sales platforms to meet both customer demand and increased safety and hygiene protocols.
With 100 million monthly active users in more than 100 countries, Wish says it is the most downloaded shopping app and strives to provide its users with a wide selection of affordable products. Wish has more than 500,000 sellers who sell 150 million items to customers. About 1.8 million items are sold every day.
The mobile commerce market totaled $ 2.1 trillion in 2019 and is projected to reach $ 4.5 trillion by 2024, according to the Wish prospectus. More than 90% of user activity and purchases on the Wish platform are done through the mobile app.
As consumers transition to e-commerce during the coronavirus pandemic, experts like Adobe Inc. ADBE,
mobile sales have taken a leap forward during the holiday season.
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Wish also relies on increased e-commerce usage from consumers who would normally shop at discounted and off-price retailers.
“We believe the next billion e-commerce customers will be these value-conscious consumers,” said Wish’s prospectus.