Shopify is capitalizing on a high stock price to replenish its cash reserves with a sizeable share offering.
The Ottawa-based firm closed an offering of class-A subordinate voting shares on Thursday, raising proceeds of $694 million. The company issued roughly 2.2 million shares on the New York and Toronto stock exchanges at a price of $317.50 per unit. (All figures USD.)
The offering was originally priced at $600 million, but underwriters Credit Suisse and Morgan Stanley exercised an over-allotment option to raise an additional $94 million.
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The skyline of the City of Cornwall is changing as development projects transform this surprisingly dynamic community on the banks of the St. Lawrence River. Municipal planning and building departments
Shopify, which recently struck a $450-million deal to acquire a warehousing and fulfilment company, said in a release that the offering will help strengthen its balance sheet. The proceeds will either be held as cash or invested in short-term, interest-bearing instruments.
Despite flooding the markets with additional shares – a move that tends to dilute value for existing shareholders – Shopify’s stock price was steady on Thursday. Shares were trading up to $331 on the NYSE before settling around $325 by market close.
