Canadian software maker Shopify valued at $2 billion in U.S. debut
By Neha Dimri
(Reuters) - Canadian e-commerce software maker Shopify Inc's (SHOP.N: Quote) SH.TO shares rose as much as 69 percent in their U.S. debut, valuing the company at about $2.14 billion.
Shopify, which also debuted on the Toronto Stock Exchange on Thursday, is the first Canadian company to be listed on a U.S. exchange this year.
Several Canadian technology companies are planning to go public as optimism about tech startups boosts valuations and spurs early investors to cash out.
Four Canadian companies listed in the United States last year, with their IPOs raising about $517 million, according to Thomson Reuters data.
Ottawa-based Shopify helps small- and medium-sized retailers set up their online stores for a monthly subscription fee of $29-$179.
"My only concern is where the stock will be in 12-24 months, and can we take a great company we have and turn it into something which is long lasting," Chief Executive Tobias Lutke said.
Shopify raised about $131 million from its initial public offering of 7.7 million class A subordinate shares, after it was priced at $17 per share, above the top end of the expected range of $14-$16.
The company sold all the shares in the offering. Continued...