BigCommerce, which works in software for online business operations, saw its value rise by 292 percent after an initial public offering (IPO) for $216 million was priced above a target range, according to a report by Bloomberg.
On Wednesday, shares of the company began trading up 183 percent from its IPO price, which is the second-biggest gain this year on the U.S. exchange for a company raising at least $100 million, according to Bloomberg's data.
The offering was led by Morgan Stanley, Barclays, Jefferies Financial Group and KeyBanc Capital Markets, Bloomberg reported, with the company trending on the Nasdaq under the symbol BIGC.
According to a PYMNTS report, Tiger Global Management plans to buy at least one-fifth of the shares in the IPO.
The company, based in Austin, Texas, has software that allows companies to manage eCommerce sales through markets like Amazon or on social media like Instagram. The most common users, according to Bloomberg, include fashion, health and beauty, food and beverage and manufacturing and automotive retailers.
BigCommerce sold 9 million shares Tuesday (Aug. 4) for $24 each. The goals for the offering rose from 6.85 million shares, with the price range rising from $18 to $20 to $21 to $23, according to Bloomberg, which cited filings with the Securities and Exchange Commission.
During the pandemic, eCommerce sites, including rivals to BigCommerce like Shopify, have done better than expected. According to Bloomberg, Shopify reported $714 million in the second quarter, with shares almost tripling this year. Analysts had only expected the company to make $512 million.
Last year, BigCommerce also announced a partnership with corporate eCommerce card company Brex, making Brex's open credit line, three-month payment terms and interest-free financing available to any BigCommerce merchants. Because of that, customers seeking short-term payments can apply to Brex through BigCommerce, while BigCommerce customers can access bigger limits, better rewards and instant online underwriting.
