(Reuters) – Shares of ContextLogic Inc, which does business as Wish, fell more than 5% in their debut on Wednesday after the e-commerce firm raised $1.1 billion in its U.S. stock market launch.
The company’s shares opened at $22.75 on the Nasdaq, below its initial public offering price of $24 apiece.
The debut gives Wish a market value of $13.34 billion. The San Francisco-based bargain shopping app sold 46 million shares at the top end of its targeted range of $22 and $24 per share.
The lackluster debut comes after mega-IPOs and stellar first-day pops of companies such as Airbnb Inc, DoorDash Inc and SnowFlake Inc.
Founded in 2010 by former Google executive Peter Szulczewski and Yahoo veteran Danny Zhang, Wish has expanded rapidly beyond the United States and now has 100 million monthly active users, according to the company’s website.
“We are investing in logistics, scaling the team on a global basis, looking for new revenue streams and improving our customer experience, which is more like TikTok for shopping,” Szulczewski, Wish chief executive, said in an interview.
The COVID-19 pandemic has led to a surge in online shopping as consumers stayed at home. Wish, which sells about 2 million products per day on its e-commerce platform, counts the likes of Peter Thiel’s Founders Fund, GGV Capital, General Atlantic and DST Global among its investors.
Goldman Sachs, J.P. Morgan and BofA Securities are the lead underwriters for Wish’s listing.
Reporting by Noor Zainab Hussain in Bengaluru and Chibuike Oguh in New York; Editing by Maju Samuel