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A Shopify credit card reader is seen with an Ipad in this file photo

Dave Chan/The Globe and Mail

Shopify Inc., which provides software for merchants to run their businesses, has increased the maximum price of shares it plans to sell in its initial public offering expected later this week.

The company is now seeking to raise as much as $123.2-million (U.S.) in the IPO, selling 7.7 million shares for $14 to $16 apiece, according to a regulatory filing Tuesday.

Prior to raising the price range by $2, Shopify was seeking an IPO size of as much as $107.8-million.

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Shopify is based in Ottawa and plans to list in both Canada and the U.S. It will use proceeds from the IPO for research and development, sales and marketing and merchant services, the prospectus shows.

Shopify generated annualized revenue of about $1,000 for each of its 162,261 merchants on the site as of March 31, the filing shows. The unprofitable company posted $105-million in revenue last year, derived from subscriptions and services.

Shopify counts Bessemer Ventures, FirstMark Capital and OMERS Ventures as investors. The company will have two classes of shares, with Class B representing 10 votes per share and Class A having one.

Morgan Stanley, Credit Suisse Group AG, and Royal Bank of Canada are managing the offering. Shopify will be listed both on the New York Stock Exchange under the symbol SHOP and the Toronto Stock Exchange as SH.

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