Shopify to sell more shares after hitting record high
Shopify Inc. said Thursday afternoon that it will sell fresh shares, after the Canadian e-commerce software company roared to record highs this week. Shares sank more than 2% in after-hours trading following the news. In an announcement of filings with securities regulators in Canada and the U.S., Shopify announced it plans to sell 1.85 million new shares, slightly more than 1.5% of its current share count, in an offering led by Citigroup and Credit Suisse. Underwriters will have access to roughly 277,000 more shares for over-allotment. Shopify reported earnings Wednesday morning, showing a surprise adjusted profit and strong merchandise sales on its platform, and the stock roared 6.9% higher to a record closing price. Shares dipped in Thursday's regular session, closing with a 1.5% decline at $722.76. The stock has gained 81.8% this year, as the COVID-19 pandemic has boosted online shopping, while the S&P 500 index has dropped 11.8%.
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