Feb 24, 2021 (Baystreet.ca via COMTEX) -- Shares of Canadian e-commerce giant Shopify /zigman2/quotes/201409449/delayed CA:SHOP -13.40% have fallen sharply after the company announced it will issue more than one million new shares.
Shopify stock fell to correction levels on both the Toronto Stock Exchange and New York Stock Exchange after the company announced that it had priced an offering 1,180,000 new Class A subordinate voting shares at $1,315 U.S. each, for gross proceeds of $1.56 billion U.S.
Shopify ended Tuesday trading down 12% from its February 12 peak. This is the second time in six months that Shopify has turned to public markets for additional financing. In September, Shopify raised $1.1 billion U.S. after issuing roughly 1.2 million Class A subordinate voting shares to investors.
Shopify said it planned to use the proceeds from its latest equity sale to strengthen its balance sheet and provide "flexibility to fund its growth strategies." The company said it would tap three Wall Street banks to underwrite its stock offering - Citigroup /zigman2/quotes/207741460/composite C -1.85% , Credit Suisse /zigman2/quotes/202835784/composite CS -1.83% and Goldman Sachs /zigman2/quotes/209237603/composite GS -1.20% .
Shopify shares have more than tripled in value since March 2020, making it Canada's most valuable publicly traded company after surpassing Royal Bank's /zigman2/quotes/200638870/delayed CA:RY -0.45% market capitalization. However, Shopify shares have come under pressure after the company warned while reporting fourth-quarter results last week that its growth will slow this year.
Is there a problem with this press release? Contact the source provider Comtex at email@example.com. You can also contact MarketWatch Customer Service via our Customer Center.