Unicorn IPOs cap off tech's big year
Online retailer Wish has priced its public offering at the top end of its marketed range at US$24 a share, according to people familiar with the matter.
Wish’s parent company, San Francisco-based ContextLogic Inc., sold 46 million shares in an IPO that will raise as much as US$1.1 billion, the people said, asking not to be identified because the information isn’t public.
At $24 a share, Wish would be valued at roughly US$17 billion on a fully diluted basis, which includes options and restricted stock units.
A representative for ContextLogic declined to comment.
The offering will add to what is already a record year and month for listings. More than US$19 billion has already been raised in IPOs on U.S. exchanges in December -- a record for the month -- bringing 2020’s total to more than US$171 billion, according to data compiled by Bloomberg.
Founded in 2010 by Chief Executive Officer Peter Szulczewski and Danny Zhang, who met at the University of Waterloo in Ontario, Canada, Wish connects sellers to potential buyers of everything from clothing to electronic goods and kitchenware. ContextLogic owns other online marketplaces, including Geek, Mama, Home and Cute, according to the Wish website.
Wish’s losses, as well as its sales, have increased during the coronavirus pandemic, according to its filings. It had a net loss of US$176 million on revenue of US$1.7 billion during the first nine months of this year, compared with a net loss of $5 million on revenue of US$1.3 billion during the same period in 2019.
Wish’s offering is being led by Goldman Sachs Group Inc., JPMorgan Chase & Co. and Bank of America Corp. The company expects its shares to begin trading Wednesday plans on the Nasdaq Global Select Market under the symbol WISH.