A little more than 9 million shares were sold at $24 each on Tuesday
SoftBank-backed BigCommerce Holdings Inc’s shares jumped nearly three-fold in their market debut on Wednesday, marking the biggest opening for a U.S. listing this year.
BigCommerce, whose technology underpins e-commerce websites of companies and brands including Skullcandy Inc, Sony Corp and Ben & Jerry’s, opened at $68 per share on the Nasdaq and hit a session high of $93.99.
The company sold a little more than 9 million shares at $24 each on Tuesday, raising $216.5 million. It had initially aimed to sell its shares at $21 to $23 per share.
Apart from SoftBank, some of the Austin-based software firm’s top investors included General Catalyst, GGV Capital, Goldman Sachs and Samsung Ventures.
BigCommerce’s blockbuster debut comes days after Canadian rival Shopify Inc smashed quarterly revenue estimates, as the coronavirus-driven online shopping surge encouraged more brick-and-mortar businesses to use its e-commerce platform.
BigCommerce is being compared to Shopify, a stock the investors are passionate about. It was priced at a good discount to Shopify, said Kathleen Smith, principal at Renaissance Capital, a provider of institutional research and IPO ETFs.
Online retailers have emerged as winners from coronavirus-led lockdowns and retain their appeal as people prefer to shop from their homes instead of making a trip to stores due to a resurgence in infections.
BigCommerce said earlier this month that it had seen a rise in sales growth for its existing customer stores and in its sales of new store subscriptions to customers.
Barclays, Morgan Stanley, Jefferies and KeyBanc Capital Markets are among the underwriters for the offering. Cooley acted as a legal advisor on the IPO.
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