Summary
Shopify Inc. announced on August 16, 2016, the pricing of a public offering of its Class A subordinate voting shares, raising gross proceeds of US$286,875,000. This offering includes US$191,250,000 from the sale of new shares by Shopify and the remainder from selling shareholders, including entities affiliated with Bessemer Venture Partners and management. The company intends to use the net proceeds from its share issuance to strengthen its balance sheet and provide capital for growth strategies, with any unused funds to be invested in short-term, investment-grade instruments or held as cash. The offering is expected to close around August 22, 2016, subject to customary closing conditions and exchange approvals. Investors should note that Shopify itself does not receive proceeds from the shares sold by the selling shareholders.
Key Highlights
- 1Shopify priced a US$286,875,000 offering of Class A subordinate voting shares.
- 2US$191,250,000 of the proceeds will go directly to Shopify, with the remainder from selling shareholders.
- 3Shopify plans to use its net proceeds to bolster its balance sheet and fund growth initiatives.
- 4The company has granted an over-allotment option for an additional 1,125,000 shares.
- 5The offering is expected to close on or about August 22, 2016.
- 6Key underwriters include Morgan Stanley, Credit Suisse, and RBC Capital Markets.