February 21, 2018 / 1:04 PM / 6 months ago

BUZZ-Shopify Inc: Dips from record territory on $660 mln stock offering

** U.S.-listed shares of Shopify down >3 pct premarket as co gets set to price its follow-on before market open

** Shares notched $146.12 all-time high on Tues before closing sesssion at $142.78 (record high close)

** After the bell, Canadian e-commerce software maker launched a 4.8 mln share offering

** Bookrunners Credit Suisse and Morgan Stanley marketing the deal in range of 137.00-$140.00, roughly 2-4 pct discount to stock’s last sale

** In offering prospectus, Shopify outlines use of proceeds as following: to strengthen balance sheet; invest in continued growth in its merchant solutions and subscription solutions; future acquisitions; increase sales and marketing investment, among others

** Offering represents about 5 pct of co’s total shares outstanding, and less than 3 days of volume based on stock’s 90-DMA

** SHOP resumed its torrid pace, even after short seller Citron Research in Oct attacked its marketing model and called it a “get-rich-quick scheme”

** YTD, stock has gained 41 pct and is up 132 pct over past 12 mths

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