Reuters / Scott Olson
- BigCommerce, a competitor to Shopify, which offers an e-commerce platform for online businesses, jumped 292% on Wednesday on its first day of trading.
- Shares of BigCommerce were $ 24 last night, allowing the company to raise $ 216 million while existing shareholders sold 9 million shares to the public.
- Within three minutes of trading, BigCommerce shares were suspended due to instability.
- BigCommerce trades on the Nasdaq under the symbol BIGC.
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BigCommerce, a competitor to Shopify, which offers an e-commerce platform as a service aimed at online businesses, jumped 292% on its first day of trading on Wednesday.
The Austin, Texas-based company and existing shareholders sold a total of 9 million shares to the public, raising $ 21
Initial public supply was initially valued in the range of $ 18 to $ 20, but strong investor demand led to an increase in the range between $ 21 and $ 23. In the end, it was priced at $ 24 on Tuesday night.
The stock traded at $ 67.84 and rose to $ 79.40 within three minutes before being stopped for volatility. Shares then jumped to $ 91.80 before being suspended again due to volatility.
The stock eventually reached a maximum of $ 93.99, representing a 292% gain on IPO pricing of $ 24.
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BigCommerce has more than 60,000 customers in 120 countries. High profile BigCommerce customers include Ben & Jerry’s, Skullcandy, Sharp and Sony.
The company has raised more than $ 200 million, with its latest round of $ 64 million funded by Goldman Sachs. Other investors in the company before the IPO include Softbank and GGV Capital.
According to TheStreet, one major investor in IPO BigCommerce is private equity Tiger Global Management. Tiger said it plans to buy up to 20% of the shares offered in the IPO.
Investors may be looking for the next Shopify, which operates a similar platform as BigCommerce and has seen its shares jump 173% a year so far as it takes advantage of increased online shopping amid the COVID-19 pandemic.
BigCommerce trades on the Nasdaq under the symbol BIGC.
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