Ottawa’s e-commerce giant is filling its own stocking with some extra cash in the run-up to the new year.
Shopify announced last week it will offer 2.6 million Class-A voting shares on the TSX and NYSE at a price of $156 per unit for total pre-tax proceeds of roughly $400 million (all figures USD). Morgan Stanley and Credit Suisse are acting as joint bookrunners on the offering.
The company says it will use the new funds to strengthen its balance sheet. In the short term it will either hold the proceeds as cash or invest in interest-bearing instruments.
The hospital says donations like RBC’s has helped TOH become one of Canada’s largest teaching and research healthcare institutions.
It’s not the first time this year Shopify has bolstered its cash reserves: The company raised $658 million in a February offering. The Ottawa firm has put some of its cash into Toronto real estate as of late, announcing in September that it’s investing CAD$500 million in a forthcoming development in the city’s downtown.
Subject to approvals from the two exchanges, the new financing is expected to close on Tuesday, Dec. 18.