Shopify headquarters in Ottawa, Canada.
David Kawai/Bloomberg
Shopify shares are trading lower Tuesday after the company sold 1.18 million Class A shares at $1,315 apiece, a 4.8% discount to Monday’s closing price at $1,381.30.
The e-commerce software company said the offering will provide $1.55 billion in gross proceeds.
Shopify (ticker: SHOP) said it would use proceeds “to strengthen its balance sheet, providing flexibility to fund its growth strategies.”
Citigroup, Credit Suisse, and Goldman Sachs are leading the offering.
Shopify has flourished during the pandemic, as many retailers rushed to set up operations online. Last week, Shopify reported that revenue for the fourth quarter was $977.7 million, up 94% from a year ago and well ahead of the Wall Street analyst consensus estimate of $910.2 million. Adjusted profits were $1.58 a share, likewise ahead of consensus at $1.25 a share. On a GAAP basis, profits were 99 cents a share, up from a penny a share a year ago. But the company also said that growth was likely to slow in 2021 from 2020 as the tailwinds from the pandemic slowed.
Shopify shares soared during the pandemic, tripling since the end of 2019. But the stock is down 6.9%, at $1,286.56, in recent trading, and has now tumbled more than 10% over the past four trading days. The S&P 500 is down 0.7%.
Write to Eric J. Savitz at [email protected]
