Wish, the online store best known for its cheap gadgets, is going to Wall Street this month. The company hopes to raise around 1.1 billion dollars (907 million euros) with the IPO.
Alternative to Amazon
Wish will take 46 million shares to the stock exchange at 22 to 24 dollars (18 to 20 euros) per share. At the top of the price range, the e-commerce giant would be valued at 14 billion dollars (11.5 billion euros), Yahoo writes.
Wish is a deep discounter. In the run-up to the IPO, the American company increasingly profiled itself as a cheap alternative to Amazon. In particular, it is targeting price-conscious consumers who don’t mind shipping taking a little longer if that means the price is significantly lower. The range of products on the platform consists of around 150 million items. In addition to all kinds of knick-knacks, more attention is being paid to essential products such as paper tissues and disinfectants – the type of goods that ensure customers to keep coming back.
Of course, the low prices also have their downside. Between 2017 and 2019, the loss decreased from 247 to 136 million dollars (204 to 112 million euros), but over this year’s first nine months, loss increased again to 176 million dollars (145 million euros), writes Business AM. Turnover, however, rose sharply to 1.75 billion dollars (1.44 billion euros).
