Benzinga | Feb 23, 2021 05:44AM EST

Shopify Raises $1.55B At 4.8% Discount To Strengthen Balance Sheet

* Global commerce company Shopify Inc. (NYSE: SHOP) priced 1.18 million shares at $1,315 per share in a secondary offering to raise $1.55 billion.

* The offer price signifies a 4.8% discount to Monday's closing price of $1,381.30. The offering proceeds will be utilized to strengthen its balance sheet and fund its growth strategies.

* The underwriters can procure additional shares up to 177,000 under a 30-day option.

* The offering led by Citigroup, Credit Suisse, and Goldman Sachs & Co. LLC is estimated to close by February 25, 2021.

* Shopify posted a 94% growth in year-on-year revenue to $977.7 million with a Gross Merchandise Volume expansion of 99% for the fourth quarter of FY20, above the consensus estimate of $913.3 million. Subscription Solutions revenue and Merchant Solutions revenue jumped 53% and 117%, respectively. The quarter benefitted from robust monthly recurring revenue from the continued joining of many new merchants and Retail POS Pro subscription offerings.

* Closing cash and cash equivalents for Q4 stood at $6.4 billion, and convertible senior notes stood at $758 million.

* SHOP shares have gained over 175% in the last year.

* Price action: SHOP shares are down 3.26% at $1,336.32 in the pre-market session on the last check Tuesday.