Shopify Prices Offering Of 5,500,000 Shares @US$91 Shopify Prices US$500,500,000 Offering of Class A Subordinate Voting Shares
20:11 EDT Thursday, May 18, 2017
OTTAWA, Ontario (Business Wire) -- Shopify Inc. (NYSE:SHOP)(TSX:SHOP) (“Shopify”) today announced that it has entered into an underwriting agreement with a syndicate of underwriters in connection with its previously announced marketed offering of Class A subordinate voting shares (the “Offering“).
The underwriters have agreed to purchase, at a price of US$91.00 per share, 5,500,000 Class A subordinate voting shares from Shopify, for gross proceeds to Shopify of US$500,500,000. Shopify has also granted the Underwriters an over-allotment option to purchase up to an additional 825,000 Class A subordinate voting shares, which option is exercisable for a period of 30 days from the date of the final prospectus supplement relating to the Offering.
Shopify expects to use the net proceeds from the Offering to strengthen its balance sheet, providing flexibility to fund its growth strategies. Pending their use, Shopify intends to invest the net proceeds from the Offering in short-term, investment-grade, interest-bearing instruments or hold them as cash.
Closing of the Offering is subject to a number of closing conditions, including the listing of the Class A subordinate voting shares on the NYSE and TSX, and any required approvals of each exchange, and is expected to occur on or about May24, 2017.
Morgan Stanley and Credit Suisse are acting as bookrunners and CIBC Capital Markets is acting as co-manager in the Offering.