Shopify, Vendor To General Electric Company (GE) And Tesla Motors (TSLA), To Go Public

Shopify has filed for an initial public offering in both the U.S. and Canadian exchanges. The company makes e-commerce software and its platform is used by Tesla Motors Inc (NASDAQ:TSLA), General Electric Company (NYSE:GE) and thousands of other clients.

Shopify will be offering Class A common stock in the planned IPO. In a security filing with the U.S. Securities and Exchange Commission, the company named RBC Capital Markets, Credit Suisse and Morgan Stanley (NYSE:MS) as some of its IPO underwriters.

The company has not been able to reveal how many shares it will be offering in the IPO. It also remains unclear the pricing range of the Class A shares on offer. However, the company quoted a nominal IPO fund raising target of $100 million, which may be different from the actual size of the IPO transaction.

Ticker symbol

Shopify is planning to list under the ticker symbol “SHOP” in the New York Stock Exchange and under the symbol “SH” on the Toronto Stock Exchange.

Speculations started emerging last month that the company was considering going public with its valuation being pegged at more than $1 billion. A number of other Canadian companies are gearing up for IPO, including PointClickCare, a software provider, Real Matters, a provider of property information and Mogo, an online lender.

Client base

Including Tesla and General Electric Company, Shopify said nearly 162,261 clients from about 150 countries used its platform as of the end of March 2015.

Early investors

Investors in Shopify include FirstMark Capital LP, Klister Credit Corp, Bessemer Venture Partners and OMERS Ventures II LP, who are expected to take advantage of the rising optimism in technology startups to cash out in the IPO.

The funds that Shopify will raise from the planned IPO will be used for general corporate purposes and working capital.

Business performance

Shopify made a loss of $4.53 million in the quarter ended March 2015, which narrowed from a loss of $6.37 million in the same period a year earlier. Revenue for the latest quarter also improved significantly, almost doubling to $37.35 million.

Neha Gupta

Neha Gupta has been in the financial space for over six years now. Gupta earned her MBA degree from Symbiosis Centre of Distance Learning in 2009 and her passion for finance led her to pursue Chartered Financial Analyst (CFA) course. She has successfully completed Level II of her CFA. She is a veteran in article writing, which is depicted in her numerous pieces published on SeekingAlpha, Nextiphonenews, InsiderMonkey, MarketWatch, and Techinsider. Her crisp and eloquent writing finds its best place in Researchcows, where emphasis is given on developing rich content for various websites, products, business plans, trainings, and book writing.

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