Wish to tap the US secondary market with US$1.1 billion IPO

December 16, 2020 03:59 PM AEDT | By Team Kalkine Media

Wish to tap the US secondary market with US$1.1 billion IPO

About the company

The company is quite popular in the e-Commerce space among the value buyers. The whole focus of the company is on the affordability of its products with the target audience of the value-conscious buyers. The company is looking the serve the global marketplace with its affordable offerings.

Image Source: ContextLogic Inc. SEC update, dated 20 November 2020

Wish uses data-driven technologies to deliver personalized shopping experience.

Financial Overview

In the last three years, the company has delivered consistent growth in revenues from US$1.1 billion in 2017 to US$1.9 billion in 2019. The current year has taken a hit due to the coronavirus pandemic, despite that, the company has garnered US$1.7 billion of revenue till 30 September 2020.

Image Source: ContextLogic Inc. SEC update, dated 20 November 2020

Due to high operating expenses, the company is yet to deliver a profitable year.

Use of the proceeds

The primary purpose of the offer is to increase financial flexibility, which includes the working capital. The company intends to use the net proceeds towards operating and sales &marketing expenses, capital expenditure, and to fund the future growth of the business.

The company is also open to acquiring complementary businesses, products or services in the future from the proceeds. The management also maintains total discretion in utilizing the funds.

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