Shopify Raises $131 Million in IPO
May 26, 2015
Canadian e-commerce platform Shopify raised about $131 million in its U.S. IPO last week after its shares were priced at $17, above expectations. During trading on its first two days on the New York Stock Exchange, shares of Shopify rose sharply, hitting a high of more than $30 on Friday before settling to $28.31 as trading ended for the Memorial Day weekend in the U.S. By some estimates, that puts the company’s valuation at north of $2 billion.
After two days of frenzied trading, experts who began putting the better-than-expected performance into perspective pointed to the fact that it is an enabling platform that will expand along with the growth of online payments and that a significant amount of its revenue comes from subscriptions services and is, therefore, predictable.