ContextLogic Inc., the parent company of mobile-focused e-commerce platform Wish, set the share price for its initial public offering on Tuesday at $ 24, the top of its proposed range.
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expects to sell 46 million shares at that price to raise at least $ 1.1 billion to a market capitalization in excess of $ 14 billion. The San Francisco company had previously declared a target price range of $ 22 to $ 24.
The shares are expected to be listed on the Nasdaq Stock Exchange on Wednesday morning with the symbol “WISH”. Goldman Sachs, JP Morgan and BofA Securities are the main subscribers and have access to an additional 6.9 million shares.
Wish joins a long list of companies that have raised at least $ 1 billion in IPOs this year, including Airbnb Inc. ABNB,
and DoorDash Inc. DASH,
last week. The IPO of the Renaissance ETF,
so far it has shot up more than 108%. And the IBUY online ETF Amplify Retail,
has shot up more than 116% during the period.
See: Wish IPO: 5 Things You Need to Know About Mobile Ecommerce Company
Wish is also made public at a time when shoppers are making an accelerated shift to e-commerce amid the COVID-19 pandemic. Traditional distributors, including Target Corp. TGT,
and department store retailers such as Macy’s Inc. M,
they have improved their online sales platforms to meet customer demand and increase safety and hygiene protocols.
With 100 million monthly active users in more than 100 countries, Wish claims to be the most downloaded shopping app and aims to offer its users a wide selection of affordable products. Wish has more than 500,000 merchants selling 150 million items to customers. Approximately 1.8 million items are sold daily.
The mobile commerce market reached $ 2.1 trillion in 2019 and is projected to reach $ 4.5 trillion in 2024, according to the Wish brochure. More than 90% of user activity and purchases on the Wish platform are made on the mobile app.
As consumers move to e-commerce during the coronavirus pandemic, experts like Adobe Inc. ADBE,
they have seen mobile sales jump during the holiday season.
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Wish is also based on greater use of e-commerce by consumers who typically shop with discount and out-of-price retailers.
“We believe the next billion e-commerce customers will be these value-conscious consumers,” the Wish brochure said.