March 24, 2021
Having become one of Canada’s most valuable companies of 2020, Shopify is capitalizing on its momentum by conducting a new public equity offering. This time, Shopify is looking to raise more than US$1.55 billion through the sale of 1,180,000 subordinate voting shares at US$1,315 per share. The offering will also include an over-allotment option of an additional 177,000 shares for its underwriter syndicate comprised of Citigroup, Credit Suisse and Goldman Sachs & Co.
This offering will be Shopify’s third public offering in the last nine months. After announcing record fourth-quarter revenues and receiving increased demand for its products over the last year, Shopify will use the proceeds of this offering to strengthen its balance sheet, thereby gaining greater flexibility to fund its growth strategies.
Shopify has recently made many notable partnerships with social media companies. In October, Shopify and Tik Tok signed a deal to make it easier for Shopify merchants to sell and promote their products on Tik Tok in the United States. Shopify has now announced that the feature will be available in Canada, Europe and Asia-Pacific as well. Shopify has also increased its partnership with Facebook, making Shop Pay available to its merchants selling through Facebook and Instagram.
After ending 2020 with an 86% growth in revenue and gross profits of $1.5 billion, Shopify is well positioned to solidify its platform by exploring these alternative avenues to growth.
Author: Shadi Varkiani