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May 21, 2015

Shopify to become $1.27bn company post IPO

Shares will begin trading on the New York Stock Exchange this Thursday.

By CBR Staff Writer

Shopify has priced its initial public offering (IPO) at $17 per share, valuing the company at $1.27 bn.

The company, which provides software tools for small and medium sized business to setup online storefronts, filed for an IPO with the New York Stock Exchange back in April this year.

The share offering was previously expected to be priced between $12 and $14.

However, its IPO of 7.7 million class A subordinate shares raised $131m at an expected range of $14 to $16 per share.

At the time of its filing, the company reportedly had 162,000 merchant subscribers across 150 countries and earned $105m in revenue last year.

However, it has not been a profitable venture for the past three years due to steady losses. In the first three months of 2015, the company posted a loss of $4.5m.

Shopify is backed by venture capital firms Bessemer Venture Partners, which owns 30% of its stake, and FirstMark Capital which owns a 12% stake.

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It competes with Bigcommerce and Magento that also provides similar services to businesses.

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