Shopify to raise up to US $575.6M in new issue

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By Ted Liu

Shopify Inc. (NYSE/TSX: SHOP) has entered into an underwriting agreement with a syndicate of underwriters in connection with its previously announced marketed offering of Class A subordinate voting shares.

Shopify will issue 5,500,000 Class A subordinate voting shares US $91.00 per share for gross proceeds to Shopify of US $500,500,000. Shopify has also granted the Underwriters an over-allotment option to purchase up to an additional 825,000 Class A subordinate voting shares, which option is exercisable for a period of 30 days from the date of the final prospectus supplement relating to the offering.

Morgan Stanley & Co. LLC and Credit Suisse Securities (USA) LLC are acting as bookrunners and CIBC Capital Markets Inc. is acting as co-manager 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 are acting as Canadian and US legal counsel to the underwriters.

Shopify expects to use the net proceeds to strengthen its balance sheet, providing flexibility to fund its growth strategies.

The offering is expected to occur on or about May 24, 2017.

photo credit: Shopify