The ChannelAdvisor IPO Has Arrived, Strongly

ChannelAdvisor Corp. (NYSE: ECOM) has now announced the pricing and details of its initial public offering. ChannelAdvisor provides cloud-based e-commerce solutions that enable retailers and manufacturers to integrate, manage and optimize their merchandise sales across hundreds of online channels including Amazon, Google, eBay, Facebook and more.

The company is selling some 5,750,000 shares of common stock at $14.00 per share. Unlike some recent IPOs where insiders and/or backers were selling shares, it turns out that all the stock being sold is by ChannelAdvisor itself. We had the original price talk between $12 and $14 per share for some 5.75 million shares, so this is at the top of the range.

Goldman Sachs is acting as the lead book-running manager and Stifel is acting as a book-running manager. Pacific Crest Securities, BMO Capital Markets, Needham & Company, and Raymond James & Associates are acting as co-managers. ChannelAdvisor has granted the underwriters a 30-day option to purchase up to 862,500 additional shares of common stock from ChannelAdvisor at the initial public offering price and under the same terms.

ChannelAdvisor’s S-1 amendment said, “As of March 31, 2013, we had nearly 2,000 customers worldwide, including 27% of the top 500 U.S. Internet retailers, as ranked by Internet Retailer magazine based on 2012 sales, up from 16% of the top 500 U.S. Internet retailers, based on 2007 sales, as of December 31, 2007…. In 2012, our customers processed over $3.5 billion in gross merchandise value, or GMV, through our platform. As of March 31, 2013, our customers managed over 100 million stock-keeping units, or SKUs, of their inventory on our platform.”

Total revenue grew from $36.7 million in 2010 to $53.6 million in 2012, but the core revenue in that same period grew from $32.7 million to $51.2 million.