Shopify shares fell on Tuesday after it announced pricing for a secondary share offering.
On Monday, the company said it offered 1.9 million class A subordinate voting shares at a price of $317.50 each, equating to gross proceeds of $603.3 million. Shopify (ticker: SHOP) plans to use the offering to strengthen its balance sheet and fund its growth strategies.
Shopify Chief Operating Officer Harley Finkelstein said the company decided to raise capital to have flexibility and enable it to be more opportunistic.
“There are a ton of opportunities for Shopify. When those opportunities arise, we want to ensure we are there to execute on them,” he said during an interview at Barron’s offices Tuesday. “There may be new acquisitions we look at. There is nothing right now, but there could be others. We want to expand our R&D and sales and marketing.”
Shopify stock has risen nearly 140% year to date as investors become more optimistic about its e-commerce infrastructure platform, services, and tools. The company uses cloud computing to offer better reliability, lower upfront costs, and scalability to more than 820,000 merchant customers, generating revenue through a combination of monthly subscription and transaction fees.
Earlier this month, the company announced an agreement to acquire 6 River Systems, a provider of warehouse fulfillment solutions and automation robots, for about $450 million. Two founders of 6 River were previously executives at Kiva Systems, which was acquired by Amazon.com (AMZN).
Shares of Shopify were down 1.6% to $332.50 in recent trading.
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