Shopify prices US $657.6M public offering

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By Ted Liu

Shopify Inc. (NYSE/TSX: SHOP) has priced previously announced public offering of 4,800,000 Class A subordinate voting shares at US $137 per share for gross proceeds of US $657,600,000.

Shopify expects to use the net proceeds from the offering to strengthen its balance sheet, providing flexibility to fund its growth strategies. Pending their use, Shopify intends to invest the net proceeds from the Offering in short-term, investment-grade, interest-bearing instruments or hold them as cash.

Closing of the Offering is subject to a number of closing conditions, including the listing of the Class A subordinate voting shares on the NYSE and TSX, and any required approvals of each exchange, and is expected to occur on or about February 23, 2018.

Credit Suisse and Morgan Stanley are acting as joint bookrunners and National Bank Financial Inc. is acting as co-Lead in the offering.

Stikeman Elliott LLP and Skadden, Arps, Slate, Meagher & Flom LLP act as Canadian and US legal counsel to Shopify respectively. Blake, Cassels & Graydon LLP and Paul, Weiss, Rifkind, Wharton & Garrison LLP act for the underwriters.

In May 2017, Shopify closed a public offering of 6,325,000 Class A subordinate voting shares at US $91 per share for gross proceeds of US $575,575,000

On May 27, 2015, Shopify completed initial public offering of 8,855,000 Class A subordinate voting shares at US $1.7 per share for gross proceeds of US $150,535,000

Tobias Lütke, CEO of Shopify, and Klister Credit Corp. are two largest shareholders of Shopify.

photo credit: Shopify