It’s exit time – as in cashing out – for some investors in ChannelAdvisor (NYSE: ECOM). And they are doing so with the stock at more than double the value from its initial public offering of $14.

The Morrisville-based provider of e-commerce services say investors are selling 4 million shares. The company also is offering 1 million shares to raise working capital and to fund capital expenses.

The markets initially did not look kindly on ChannelAdvisor’s moves and the stock price fell to $34, a 9.48 percent drop from Monday’s close as well as the firm’s quarterly financial report on Monday.

Trading ranged from a high of $37.63 and a low of $32.27 and the stock rallied to close at $36.88, down 1.81 percent from Monday’s closing price.

More than 591,000 shares were traded – the busiest day since August 13 when 827,300 shares changed hands.

“We intend to use the net proceeds from this offering for working capital and other general corporate purposes, including further expansion of our sales and marketing capabilities and international operations,” the firm explained in the filing.

“In addition, we may use a portion of the proceeds from this offering for opportunistic acquisitions of complementary businesses, technologies or other assets, although we do not currently have plans for any acquisitions. We will not receive any of the proceeds from the sale of shares to be offered by the selling stockholders, including any shares purchased upon the exercise of the underwriters’ option to purchase additional shares.”

The top shareholders in ChannelAdvisor, according to the SEC filing:

  • Kodiak Venture Partners, 3,611,489 shares; 16.5%
  • New Enterprise Associates, 3,735,806; 16.5%
  • Advanced Technology Ventures, 2,753,799; 12.6%

Founder and CEO Scot Wingo owns some 7 percent of the shares.

ChannelAdvisor announced the stock sales Monday after the markets closed.

The venture capital-backed company went public in May. Investors are often required to hold on to shares until certain dates once companies have gone public.

Shares closed at $37.56 Monday before ChannelAdvisor announced its latest quarterly earnings. They closed at $17.60 on the first day of trading May 23.

For the second quarter as a public company, ChannelAdvisor reported revenues of $16.6 million, up 28 percent from a year earlier.

The company reported a loss of $4.3 million, also up from a year earlier when losses totaled $2 million. The net loss was 20 cents per share for the latest quarter. 

In a filing with the Securities and Exchange Commission, ChannelAdvisor said “certain selling stockholders” were putting 4 million shares on the market.

ChannelAdvisor itself will sell 1 million shares “to use proceeds from the offering for general corporate purposes, including working capital and capital expenditures.”

The selling shareholders as well as the underwriters of the offering have an option to purchase as many as 750,000 additional shares.

Underwriters include Goldman, Sachs & Co., Stifel, Nicolaus & Company, BMO Capital Markets Corp., Needham & Company, LLC, Pacific Crest Securities LLC, Raymond James & Associates, Inc. and Robert W. Baird & Co.

Investors in ChannelAdvisor include eBay and Raleigh-based Southern Capitol Ventures.

Wingo has successfully steered two other Morrisville companies to exit. In 1998, Wingo sold Stingray Software to Boulder, Colo. company Rogue Wave Software Inc. for $21 million.

Two years later, Wingo’s online auctions software company was acquired by Pasadena, Calif. company for $174 million.

(Note: Capitol Broadcasting, the corporate parent of WRALTechWire, is an investor in Southern Capitol.)