E-commerce software company ChannelAdvisor (NYSE:ECOM) is selling more stock with the goal of raising $31.8 million that the company will use for growth.
The offering of 5 million shares is priced at $34 per share. Stock in Morrisville-based ChannelAdvisor closed Tuesday at $34.62. The company will sell 1 million shares of common stock and some existing shareholders will sell 4 million shares of common stock in the offering. Some of those existing shareholders have granted underwriters 30 days to purchase up to 750,000 in additional shares of common stock at the public offering price, minus the underwriting discount.
Goldman Sachs & Co. is the lead book-running manager for the proposed offering. Stifel, Nicolous & Company is acting as book-running manager. BMO Capital Markets Corp., Needham & Company, LLC, Pacific Crest Securities LLC, Raymond James & Associates, Inc. and Robert W. Baird & Co. Incorporated are acting as co-managers. The offering is expected to close on Nov. 12.
ChannelAdvisor, whose software helps retailers manage sales over the Internet, went public in April. The company won’t receive any proceeds from the sale of stock by existing shareholders. According to securities filings, the top shareholders in the company include Kodiak Venture Partners, with 3,611,489 shares for a 16.5 percent stake; New Enterprise Associates with 3,735,806 shares for a 16.5 percent stake; and Advanced Technology Ventures with 2,753,799 for a 12.6 percent stake.
At the $34 per share price, the stock that ChannelAdvisor itself sells is expected to net $31.8 million after expenses. ChannelAdvisor plans to use proceeds from that sale to expand its sales and marketing as well as its international operations, the company said in its prospectus.
