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December 8, 2020

Online marketplace Wish plans to raise $1.1bn in IPO

Ecommerce platform Wish has filed a $1.1bn initial public offering (IPO) prospectus with the Securities and Exchange Commission (SEC).

Ecommerce platform Wish has filed a $1.1bn initial public offering (IPO) prospectus with the Securities and Exchange Commission (SEC).

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What’s missing from your IPO industry assessment?

IPO activity all but stopped in 2020, as the investment community grew wary of the effects of COVID-19 on economies. No matter how deserving a business was of flotation, momentum was halted by concerns of when a ‘new normal’ of working patterns and trade would set in. Recently, sentiment has changed. Flotations picked up again during the second half of 2021, and now in 2022 the mood is decidedly optimistic. Business leaders have their eyes on fast rebounding economies, buoyant market indices and the opportunity once again to take their businesses public. As a result, global IPOs are expected to hit back this year. With GlobalData’s new whitepaper, ‘IPOs in Consumer and Retail: 5 must-include elements for your prospectus industry report’, you can explore exactly what is needed in the essential literature. GlobalData’s focus lies in the critical areas to get right:
  • Macroeconomic and demographic environment
  • Consumer context
  • Industry environment
  • Competitive environment
  • Route to market
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by GlobalData
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Under the terms of the IPO, the retailer will be offering 46 million shares at a price range of $22 to $24.

This will take the market value of Wish, a company offering e-commerce platform for ultra-bargain unbranded merchandise, to $16.4bn.

For the nine months ending 30 September, Wish reported $1.75bn in revenue and a net loss of $176m.

Speaking of the development, Iterable senior content marketing manager Michael Huard said: “Wish tapped into the trend towards affordable, accessible products early on. They made a name for their brand early on with low prices, shopping mall search style and eclectic social media ads. With growing consumer e-commerce expectations and the pandemic-induced growth of e-commerce, Wish’s surge in demand is a natural, expected and well-earned evolution.”

“Wish is looking to stake its claim in the market as the affordable, e-commerce platform of choice for customers. It has succeeded thus far in building a connection with consumers through an easily identifiable brand voice. To expand further on this success, Wish and e-commerce brands will have to take advantage of all communication channels available to keep consumers engaged wherever they are.”

ContextLogic , the parent company of Wish, plans to list its shares on the Nasdaq under the symbol WISH.

Wish plans for IPO came as the retail environment saw the increasing transition into digital motivated by the coronavirus pandemic.

Based in San Francisco, California, former Google engineer Peter Szulczewski founded Wish in 2010.

The company offers discounted goods, such as cheap homewares, apparel, electronics and toys serving more than 100 million monthly users in over 100 countries.

Free Report
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What’s missing from your IPO industry assessment?

IPO activity all but stopped in 2020, as the investment community grew wary of the effects of COVID-19 on economies. No matter how deserving a business was of flotation, momentum was halted by concerns of when a ‘new normal’ of working patterns and trade would set in. Recently, sentiment has changed. Flotations picked up again during the second half of 2021, and now in 2022 the mood is decidedly optimistic. Business leaders have their eyes on fast rebounding economies, buoyant market indices and the opportunity once again to take their businesses public. As a result, global IPOs are expected to hit back this year. With GlobalData’s new whitepaper, ‘IPOs in Consumer and Retail: 5 must-include elements for your prospectus industry report’, you can explore exactly what is needed in the essential literature. GlobalData’s focus lies in the critical areas to get right:
  • Macroeconomic and demographic environment
  • Consumer context
  • Industry environment
  • Competitive environment
  • Route to market
Interested to learn more about what to include in your IPO Industry Assessment report? Download our free whitepaper.
by GlobalData
Enter your details here to receive your free Report.