Shopify, the Canadian e-commerce software company, priced its initial public offering at $17 per share late Wednesday, giving the company a valuation of $1.27 billion.
It sold its 7.7 million shares, raising a total of $131 million. It had proposed a range of $14 to 16, up from $12 to 14 earlier.
Founded almost a decade ago in 2006, Shopify provides software tools for online retailers including storefronts, payment processing and apps for checkout. It competes with Bigcommerce and Magento, among others, and previously raised a total of $122 million in private funding.
Shopify filed to go public in mid-April following at the heels of another hotly watched e-commerce IPO, New York-based Etsy [fortune-stock symbol=”ETSY”]. The filing also revealed that Shopify had, at the time, more than 162,000 merchant customers in 150 countries, yielding $105 million in revenue for the company last year.
But despite that, Shopify been losing an increasing amount of money for the last three years. It posted a loss of $4.5 million for the first three months of 2015, and total deficit of $33.6 million amassed over the years. Losses are likely to continue, according to the document.
Shopify also acknowledged several of its risks, including its heavy reliance on resellers to build its business, and that it outsources the processing of its payments to another company, Stripe.
Shares will begin trading Thursday on the New York Stock Exchange under the symbol “SHOP” and the Toronto Stock Exchange under “SH.”
The IPO’s underwriters included Morgan Stanley, Credit Suisse, and RBC Capital Markets, Pacific Crest Securities, Raymond James, and Canaccord Genuity.
- Here’s How Effective the Original Vaccines Are Against Omicron
- The Promise—And Possible Perils—of Editing What We Say Online
- How Trump Survived Decades of Legal Trouble: Deny, Deflect, Delay, and Don't Put Anything in Writing
- Flint Is Still Shaken by its Water Crisis—and Residents Are Experiencing Long-Term Mental-Health Issues
- A Beer Shortage Is Brewing. A Volcano Is Partly to Blame
- How Fasting Can—and Can't—Improve Gut Health
- Cities Keep Enforcing Curfews for Teens, Despite Evidence They Don't Stop Crime
- Joe Manchin’s Red Tape Reform Could Supercharge Renewable Energy in the U.S.
- Column: We Should Talk More About What a Brilliant Actor Marilyn Monroe Was