Buying application Wish falls in its stock marketplace debut

The mother or father company of Desire, a procuring application that sells affordable outfits, toys and electronics, sputtered in its stock industry debut.

Shares of ContextLogic Inc. fell 16.5% to shut at $20.05 Wednesday, valuing the business at approximately $14 billion. The stock is trading on the Nasdaq Stock Market under the symbol “WISH.”

Launched a 10 years ago, Would like positions alone as an reasonably priced different to Amazon and other on the web outlets, targeting customers who make much less than $75,000 a 12 months. Most of what it sells will come instantly from Chinese merchants, who list their products on the application. Would like mentioned it has 100 million shoppers all-around the earth, mostly in North The us and Europe.

Desire, like other e-commerce businesses, has benefited for the duration of the pandemic as much more folks continue to be at home and order on the internet. Product sales had been up 33% to $606 million in the June-to-September quarter. But it however missing funds, reporting a decline of $99 million.

San Francisco-based ContextLogic elevated $1.1 billion in its original general public presenting, offering 46 million shares at $24 apiece.

It’s been a blockbuster 12 months for IPOs. A report variety of firms have elevated $1 billion or a lot more this year, which includes meals shipping and delivery company DoorDash and house rental company Airbnb. Unlike Desire, shares of all those companies soared in their debut.