Shopify Inc., which briefly this week overtook Royal Bank of Canada as this country’s most valued company, has made a new public offering of shares that has raised US$1.295-billion for the high-flying Canadian tech stock.
The 1.850 million additional Class A subordinate voting shares were priced at $700 (U.S.), which was below Thursday’s closing price on the New York Stock Exchange of $722.76. In U.S. trading this morning, shares were down 1.3 per cent at $713.
Lead underwriters for the secondary offering were Citigroup and Credit Suisse. National Bank was the lone Canadian bank to work on the deal, acting as a co-manager.
Shopify also granted the underwriters an over-allotment option to purchase up to an additional 15% of the Class A subordinate voting shares.
Shopify said it expects to use the net proceeds from the $1.295-billion offering to strengthen its balance sheet, “providing flexibility to fund its growth strategies.”
Closing of the offering is subject to a number of conditions, including NYSE and TSX exchange approval, and is expected by May 12.
Shopify booted Royal Bank out of the top spot for most valuable Canadian company on Wednesday, but lost that crown on Thursday as its shares closed down 1.7%. At of the close of trading Thursday, Shopify’s market valuation was C$119.17 billion, compared to RBC’s $119.87 billion.
Shopify’s current float consists of about 105.3-million Class A shares and 11.8-million Class B shares. The vast majority of trading in Shopify is on the New York Stock Exchange.