Shopify raises $246M in share sale

Shopify will raise about $246 million through the sale of five million treasury shares, the company said Wednesday.

The offering will also see Bessemer Venture Partners, which was the lead investor in Shopify’s series A investment round in 2010 and also participated in its series B and C rounds, as well as several Shopify executives sell another 2.5 million shares.

The proceeds of that – more than $123 million – will go to the selling shareholders.

In total, 7.5 million shares in the Ottawa-based e-commerce firm will be offered. The shares will be priced at US$38.25, or approximately CAD$49.25 as of Wednesday.

The company first announced its plans to conduct the offering in late July. However, it didn’t announce the pricing until Wednesday.

The company plans to use the proceeds to “to strengthen our balance sheet, providing us flexibility to fund our growth strategies,” it said in a filing with securities regulators in the United States.

Shares in Shopify (TSX:SH, NYSE:SHOP) were up 73 cents to $50.11 in early afternoon trading on the Toronto Stock Exchange.