Searching app Desire falls in its stock market debut

The parent firm of Would like, a shopping app that sells low-cost clothing, toys and electronics, sputtered in its stock market debut.

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

Started a decade in the past, Would like positions itself as an affordable option to Amazon and other on the web suppliers, focusing on shoppers who make less than $75,000 a 12 months. Most of what it sells will come specifically from Chinese merchants, who list their merchandise on the app. Want claimed it has 100 million prospects about the globe, mainly in North America and Europe.

Wish, like other e-commerce firms, has benefited all through the pandemic as a lot more people today continue to be at household and purchase on the net. Sales were being up 33% to $606 million in the June-to-September quarter. But it however lost revenue, reporting a reduction of $99 million.

San Francisco-dependent ContextLogic raised $1.1 billion in its initial community offering, providing 46 million shares at $24 apiece.

It’s been a blockbuster year for IPOs. A report selection of firms have lifted $1 billion or more this year, such as food stuff delivery enterprise DoorDash and property rental enterprise Airbnb. Contrary to Desire, shares of individuals providers soared in their debut.