05/21/2015 12:53 EDT | Updated 05/21/2016 05:59 EDT

Shopify stock soars in New York debut after IPO

The stock price of Ottawa-based startup Shopify soared above $28 in its first day of trading on the Nasdaq exchange, after being offered for a listing price of $17.

The tech company which helps small merchants move their business online listed in New York today under the ticker SHOP.

It will list in Toronto next week.

Shopify sold 7.7 million shares for $17 apiece ahead of the listing, after investors clamoured for shares in the company because of its e-commerce potential,

The IPO price would put Shopify's market value at $1.27 billion.

The auspicious debut is raising hopes among other Canadian tech firms hoping to list to raise capital.

Founder Tobias Lütke sought a new way for small businesses to sell online, when he had snowboards to sell over the internet in 2004.

Today, 165,000 stores use Shopify. The company had a net loss of $22.3 million in 2014.

At midday, the stock was trading at $25.38, 49 per cent above its issue price.