BUSINESS

Retail software maker Shopify increases IPO ahead of expected listing

05/19/2015 04:19 EDT | Updated 05/19/2016 05:59 EDT
OTTAWA - E-commerce software maker Shopify is boosting the amount of its initial public offering to US$123.2 million.

According to regulatory filings, the Ottawa-based company plans to sell 7.7 million shares for $14 to $16 each.

The higher IPO comes after Shopify disclosed earlier this year that it hoped to raise closer to $108 million.

Earlier this month, Shopify launched an investor road show to offer a glimpse of their future prospects.

The raised price suggests that investors expressed more interest than expected for the company's future, which helps small- and medium-sized businesses launch online and mobile platforms to help sell their products.

In documents filed with the U.S. Securities and Exchange Commission on Tuesday, Shopify said it could raise as much as $141.7 million when factoring in an extra 1.16 million voting share over-allotments.

The filing also outlined the company's plans to spend money raised through the IPO on further research and development for new products and services, as well as merchant support.

Shopify is expected to list its shares later this week on the New York Stock Exchange and Toronto Stock Exchange under the symbols SHOP and SH, respectively.

Regulatory filings show that Shopify lost $22.3 million last year compared to $4.8 million in 2013. Its revenue more than doubled to $105 million.