Shopify is looking to raise more than $1.55 billion USD through the sale of its stock, as it continues to increase its partnerships with social media companies.
Shopify priced its offering Tuesday morning, with plans to sell 1,180,000 subordinate voting shares at $1,315 USD per share. The company expects the sale to pull in gross proceeds of $1,551,700,000 USD.
Having become one of Canada’s topmost valuable companies in 2020, Shopify is optimizing on the increase in demand for its product.
The offering also includes an over-allotment option for underwriters of an additional 177,000 shares. Underwriters for this deal are Citigroup, Credit Suisse and Goldman Sachs & Co.
This marks the third share offering Shopify has launched over the last nine months. With the proceeds from this latest sale, Shopify will have pulled in $4.2 billion, plus $920 million USD in convertible notes. Shopify said it expects to use the net proceeds from the offering to strengthen its balance sheet and providing flexibility to fund its growth strategies.
Having become one of Canada’s topmost valuable companies in 2020, Shopify is optimizing on the increase in demand for its product over the last year and record fourth-quarter revenue that was announced last week. With the boom in e-commerce that has turned into 1.75 million customers, Shopify has been increasing its reach in many verticals, notably working with a number of social media companies to launch new features for its merchants.
On Tuesday, it was announced that Shopify is expanding the partnership it penned with TikTok last fall to Canada. In October, it was announced that Shopify and TikTok had signed a deal to make it easier for merchants in the United States to advertised and sell products on the video-sharing social media site. Now, the feature is available in Canada as well. A spokesperson for Shopify told BetaKit the deal has also been expanded to Europe and Asia-Pacific.
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This month, Shopify also increased its partnership with Facebook, making Shop Pay available to its merchants selling on Facebook and Instagram. The deal marked the company looking to increase its reach in the payment space as well as with social media partners. Shopify originally announced a partnership with Facebook in May, launching Facebook Shops, a free tool aimed to help merchants create customized online storefronts for Facebook and Instagram. The Canadian e-commerce company has also been working on an integration with YouTube.
Shopify capped off its massive year of growth announcing an 86 percent increase in revenue and gross profits of $1.5 billion in 2020. With a change-up in its leadership team that now has CEO Tobias Lütke pivoting his efforts to focus on product, Shopify recently hired Cathy Polinsky as its new VP of engineering and revealed plans to double the size of its engineering team, with a goal to hire 2,021 new technical roles in 2021.
Shopify’s latest offering comes as the company is expecting its rate of growth to normalize in 2021, following the unexpected growth this past year.