US-based online retail software provider BigCommerce, which counts corporates Softbank, Telstra and American Express among its investors, closed its initial public offering at approximately $249m on Friday.
The company issued 6.85 million shares on the Nasdaq Global Market on Wednesday priced at $24.00 each, with its co-founders selling another 2.2 million to take the size of the offering to $216m.
The underwriters bought more than 2.8 million more shares from the company and its founders through the over-allotment option, after BigCommerce’s share price more than tripled on its first day of trading. Its price now stands at $79.00 giving it a $4.9bn market capitalisation.
BigCommerce provides software that allows businesses to set up online storefronts, and its customers include electronics manufacturer Sony, ice cream producer Ben & Jerry’s and headphones brand Skullcandy. It made a $4m net loss in Q1 2020 from $33.2m in revenue.
The IPO came after $219m in funding from investors including Softbank Capital, Telstra Ventures and American Express Ventures, subsidiaries of telecommunications and internet group SoftBank, telecoms company Telstra and payment services firm American Express.
Investment bank Goldman Sachs, General Catalyst, GGV Capital, Revolution Growth, Split Rock Partners, Floodgate and Tenaya Capital are also among the company’s backers.
The company’s largest shareholders are now General Catalyst (15.2%) followed by Revolution Growth (10.5%), co-founders and CEOs Mitchell Harper (8.8%) and Wadih Machaalani (8%), GGV Capital, WestRiver Group (4.5% each) and Silicon Valley Bank (4.4%).
The underwriters for the IPO were lead book-running managers Morgan Stanley and Barclays, book-running managers Jefferies and KeyBanc Capital Markets, and co-managers Canaccord Genuity, Needham & Company, Raymond James and Truist Securities.
