- Global commerce company Shopify Inc. (NYSE: SHOP) priced 1.18 million shares at $1,315 per share in a secondary offering to raise $1.55 billion.
- The offer price signifies a 4.8% discount to Monday’s closing price of $1,381.30. The offering proceeds will be utilized to strengthen its balance sheet and fund its growth strategies.
- The underwriters can procure additional shares up to 177,000 under a 30-day option.
- The offering led by Citigroup, Credit Suisse, and Goldman Sachs & Co. LLC is estimated to close by February 25, 2021.
- Shopify posted a 94% growth in year-on-year revenue to $977.7 million with a Gross Merchandise Volume expansion of 99% for the fourth quarter of FY20, above the consensus estimate of $913.3 million. Subscription Solutions revenue and Merchant Solutions revenue jumped 53% and 117%, respectively. The quarter benefitted from robust monthly recurring revenue from the continued joining of many new merchants and Retail POS Pro subscription offerings.
- Closing cash and cash equivalents for Q4 stood at $6.4 billion, and convertible senior notes stood at $758 million.
- SHOP shares have gained over 175% in the last year.
- Price action: SHOP shares are down 3.26% at $1,336.32 in the pre-market session on the last check Tuesday.