How does the Siemens Energy IPO work?

Siemens splits off a share of 50 to 75 percent of the new company to its shareholders. Overnight, the company derecognises the securities. As a result, investors who own a Siemens share automatically receive the Siemens Energy share in exness forex. In theory, the stock market value of the parent company is reduced by the value of the new business unit. Accordingly, nothing changes in the asset situation for existing shareholders.

The situation is different for investors who buy the newcomer share. In some cases they benefit from favourable offers, since many existing shareholders do not know what to do with the Siemens Energy stock. They sell the shares. Furthermore, sales come from DAX ETFs, as Siemens Energy is not yet part of the DAX. As a result of this process, the valuation after the spin-off may be at a very low level.

Only time will tell whether the theoretical assumption will prove true in the case of Siemens Energy. In addition to the best German shares, international companies will go public in 2020. Among them is an eCommerce business that is giving Amazon a run for its money. Wish originates from the Californian metropolis of San Francisco and has existed since 2010. The founder of the company goes by the name of Piotr Szulczewski.

In 2019, Wish achieved a turnover of over three billion US dollars. After the financing round in August 2019, the group had a market capitalisation of eleven billion US dollars. In the US, it is the third largest eCommerce website after Amazon and eBay. It gained notoriety due to its low prices and deep discounts. The provider celebrates success due to a network effect. Customers navigate to Wish.com. Wholesalers and manufacturers advertise on the platform.

The Wish business model

In the United States, Wish is the third largest online retail website. In over 100 countries, the portal is among the top five eCommerce providers. The company has over one million registered merchants. According to the group, it sells over three million products daily to 500 million registered users. In one month, the site registers 100 million active customers. Behind the portal is a pure marketplace for traders and customers. The business model is similar to that of eBay.

Wish takes care of the search process for certain products and handles the payment process. The company does not stock products itself. If merchants register on the website, they take responsibility for shipping and returns. The idea behind the concept is simple and successful. Customers benefit from the lowest prices worldwide. The products reach the consumers directly from the wholesalers. Wish achieves this goal in two ways. It bypasses all middlemen. The manufacturers put their offers on the site and reach the users.

Conclusion

Delivery takes place within one to three weeks. The slow delivery ensures maximised cost savings. This strategy bypasses higher shipping fees that occur due to time constraints. At the same time, it allows retailers to produce in bulk and deliver goods at the same time.