BigCommerce Increases IPO Price Range to $21-23 per Share, Plans to Raise Nearly $200 Million

UTC by Tolu Ajiboye · 3 min read
BigCommerce Increases IPO Price Range to $21-23 per Share, Plans to Raise Nearly $200 Million
Photo: BigCommerce / Instagram

BigCommerce hopes to raise almost $200 million from its IPO, announcing a new price range that will be between $21 and $23 per share.

BigCommerce has raised its IPO price range to $21-$23 per share. The company announced this in a filing with the U.S. Securities and Exchange Commission (SEC) on the 3rd of August. Formerly set at $18-$20, the new price range should pull in more income for the company.

BigCommerce plans to sell 6.85 million shares. In addition to this, over 2 million shares will be sold from selling stockholders. In total, the company will sell 9.02 million shares at the IPO.

BigCommerce Raises IPO Price Range

Earlier, BigCommerce announced its IPO price range at $18 to $20 per share. At the initial price, the company’s valuation was between $1.8 billion and $1.31 billion. This valuation appears low, considering that the company’s revenue for the last quarter was between $35.5 million and $35.8 million. However, with the new price range of $21-$23 per share, BigCommerce hopes to raise $198 million. 

Also, BigCommerce has revealed that entities involved with American hedge fund Tiger Global are looking to buy a considerable amount of the available shares. According to the SEC announcement:

“One or more entities affiliated with Tiger Global Management, LLC, or Tiger Global, have indicated an interest in purchasing up to a maximum of 20% of the shares of Series 1 common stock offering at the initial public offering price. This indication of interest is not a binding agreement or commitment to purchase.”

Still addressing the interest by Tiger Global Management, BigCommerce added:

“As a result, Tiger Global could determine to purchase more, less, or no shares in this offering, or the underwriters could determine to sell more, less or no shares to Tiger Global, the underwriters will receive the same discount on any shares sold to Tiger Global as they will from any other shares sold to the public in the offering.”

The underwriters include Barclays, Morgan Stanley, Jefferies, and KeyBanc. Also, BigCommerce has received approval to list its Series 1 common stock on the Nasdaq Global Market with the ticker “BIGC.”

BigCommerce Classes of Common Stock

As announced by the company, BigCommerce has two classes of common stock available. They are Series 1 common stock and Series 2 common stock. Holders of the two classes have similar rights “except for voting and conversion rights.” Explaining the differences between the two classes of stock, the announcement revealed:

“Each share of Series 1 common stock is entitled to one vote and is not convertible into another class or series of our securities. Series 2 common stock is not entitled to vote, except as required by law, and automatically converts without the payment of additional consideration into Series 1 common stock only upon transfer by holders of Series 2 common stock in certain circumstances. As such, only holders of Series 1 common stock are entitled to vote on the election of members of the board of directors.”

Founded in 2013, BigCommerce is a company that develops e-commerce software and shopping cart platforms. The company offers services that help its clients provide easy online shopping experiences to customers. Presently with over 600 employees, the Texas-based company also has about 18 investors. Some of the investors include Golden Gate Ventures, WestRiver Group, Goldman Sachs Growth, and Millennium Partners.

As of 1st of June, 2020, BigCommerce provides its services to almost 60,000 online stores in close to 120 countries.

Business News, IPO News, News
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