NEW YORK (AP) — Shares of Shopify climbed 51 percent in its first day of trading Thursday, a day after raking in about $131 million in its initial public offering, more than the company expected.
Shopify stock rose $8.68 to close at $25.68. The offering of 7.7 million shares priced at $17 each, valuing the entire company at around $1.27 billion.
The Canadian company works with merchants who want to offer their own online checkout services, providing a platform for small- and mid-size businesses that sell products online. Clients can use Shopify’s software to handle sales made through mobile phones, the Web, physical stores and other means.
Shopify Inc. said it handled about $3.8 billion in transactions in 2014, and it reported $105 million in revenue.
The jump gave Shopify one of the strongest first-day performances among companies that went public in 2015. The biggest gainers have been cancer drug developer Aduro Biotech Inc. and Shake Shack Inc., both of which more than doubled in value on their first day of trading.
The stock is trading on the New York Stock Exchange under the ticker symbol “SHOP.”
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