Shopify raises $1.5B in share offering

Tobi Lutke

E-commerce giant Shopify said Tuesday it has raised nearly $1.5 billion after selling more than 2.1 million class-A shares.

Shopify (TSX:SHOP) said in a news release it offered 2,127,500 class-A shares, including an over-allotment option of 277,500 shares, at a price of US$700 a share. The company says it plans to use the net proceeds of the offering to “strengthen its balance sheet” as it funds its future growth strategies.

Shopify also said Tuesday it was adding to its roster of point-of-sale products in Canada. The company said it is introducing a tap- and chip-card reader that will allow retailers using its new POS technology to accept “tap” payments from consumers using debit and credit cards as well as Apple Pay and Google Pay.

The move comes just a week after Shopify launched a new point-of-sale system that allows merchants to create specific instructions for curbside pickup outside their brick-and-mortar locations so customers can pick up items while respecting physical distancing measures designed to curb the spread of the novel coronavirus.

“Giving businesses the ability to offer flexible and safe payment options has never been more important,” the company said. 

Shopify shares cracked the $1,000 mark on the Toronto Stock Exchange for the first time last week – briefly becoming the country’s most valuable company, behind RBC – after the e-commerce giant reported a 47 per cent jump in first-quarter revenues and a surge of new interest from merchants in sectors such as the food and beverage industry in the wake of COVID-19.