Shopify Falls 5% in After-Hours Trading on Secondary Offering Plan
Shopify Inc. (SHOP) shares fell sharply in after-hours trading Monday after the company announced a secondary share offering.
Shares of the Canadian-based online retail services provider fell $16.94, or 5%, to $320.99 in the after-hours session.
The company said it will offer 1.9 million Class A subordinate voting shares.
The offering will be led by Credit Suisse and Morgan Stanley, who will be granted an over-allotment option for an additional 15% of the Class A shares.
The company plans to use the proceeds from the offering “to strengthen its balance sheet, providing flexibility to fund its growth strategies,” according to a statement announcing the offering.