ChannelAdvisor, which went public in May, is taking advantage of the robust performance of its stock by selling another round of shares.
The Morrisville e-commerce technology firm announced after the markets closed Monday that it plans to sell 5 million shares of stock to the public.
Earlier Monday, ChannelAdvisor’s shares closed at $37.56, down 89 cents. That’s well more than double the $14 per share that the shares fetched when the company went public.
However, ChannelAdvisor will only receive the net proceeds from the sale of 1 million shares of newly issued stock. The other 4 million shares are being sold by existing shareholders who are cashing in.
Those shareholders aren’t specified in the registration statement ChannelAdvisor filed with the Securities and Exchange Commission on Monday.
ChannelAdvisor said it plans to use the proceeds from the offering for “general corporate purposes.”
The offering will boost the number of outstanding ChannelAdvisor shares by 1 million to 22,672,635 shares. Companies’ stock prices typically sag after they announce a secondary stock offering because issuing new stock dilutes earnings on a per-share basis.
ChannelAdvisor provides technology that enables retailers to integrate and manage their online sales across a multitude of sales channels, including the likes of eBay, Amazon, Buy.com and Sears. Its more than 2,000 manufacturing and retailing customers include Dell, Lenovo, Ann Taylor and Jos. A. Bank Clothiers.
Last week ChannelAdvisor added two foreign e-commerce marketplaces that its customers can easily sell their wares and services on – MercadoLibre, the biggest online marketplace in Latin America, and a marketplace operated by United Kingdom-based Tesco, one of the world’s largest retailers.
ChannelAdvisor expects revenue for all of 2013 will range from $66.1 million to $66.7 million, up from $53.6 million last year.
The company isn’t profitable, but Wall Street seems enamored with its invest-now-and-make-money-later game plan, which calls for it to aggressively boost its marketing spending.
ChannelAdvisor had 432 employees at the end of March, including more than 300 in Morrisville.
Co-founder and CEO Scot Wingo said in an August interview that the company would add in the neighborhood of 100 workers over the next 12 months.