Shopify Raises $1.55B At 4.8% Discount To Strengthen Balance Sheet

Global commerce company Shopify Inc. (NYSE: SHOP) priced 1.18 million shares at $1,315 per share in a secondary offering to raise $1.55 billion.
The offer price signifies a 4.8% discount to Monday's closing price of $1,381.30. The offering proceeds will be utilized to strengthen its balance sheet and fund its growth strategies.
The underwriters can procure additional shares up to 177,000 under a 30-day option.
The offering led by Citigroup, Credit Suisse, and Goldman Sachs & Co. LLC is estimated to close by February 25, 2021.
Shopify posted a 94% growth in year-on-year revenue to $977.7 million with a Gross Merchandise Volume expansion of 99% for the fourth quarter of FY20, above the consensus estimate of $913.3 million. Subscription Solutions revenue and Merchant Solutions revenue jumped 53% and 117%, respectively. The quarter benefitted from robust monthly recurring revenue from the continued joining of many new merchants and Retail POS Pro subscription offerings.
Closing cash and cash equivalents for Q4 stood at $6.4 billion, and convertible senior notes stood at $758 million.
SHOP shares have gained over 175% in the last year.
Price action: SHOP shares are down 3.26% at $1,336.32 in the pre-market session on the last check Tuesday.

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