ContextLogic to Price Oversubscribed IPO Tuesday Evening

In its prospectus, Context mentioned selling 52.9 million shares at a price of up to $24 per share, which would raise $1.27 billion.
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ContextLogic, which owns online retailer Wish, is slated price its initial public offering Tuesday evening, as it prepares to begin trading Wednesday.

In its prospectus, the company mentioned selling 52.9 million shares at a price of up to $24 per share, which would raise $1.27 billion.

The deal is multiple-times oversubscribed, knowledgeable sources told Bloomberg. The stock will trade on the Nasdaq Global Select Market with the ticker “WISH.”

Context’s revenue jumped 32% in the nine months ended Sept. 30 to $1.7 billion from $1.3 billion in the year-ago period. The company generated a net loss of $176 million and an adjusted EBITDA loss of $99 million in the latest period. That compares to a net loss of $5 million and adjusted EBITDA loss of $11 million last year.

Meanwhile, it looks like the initial public offering market turned too hot to handle for financial tech company Affirm Holdings and videogame company Roblox, who delayed their IPO plans in recent days.

The moves came after DoorDash DASH and Airbnb ABNB saw their IPOs skyrocket last week. DoorDash jumped 86% in its first day of trading Wednesday. Airbnb doubled in its premier a day later.

Affirm and Roblox likely want to see the dust settle before diving in. Market mania is now in full swing for IPOs. The Renaissance IPO ETF IPO has soared 110% year to date.

While early surges help those who buy shares in IPOs or receive them before the stocks go public, such outsized moves mean the issuers left money on the table. So Affirm and Roblox may be reluctant to begin trading in such an environment.

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