* At high of $21.25, company valued at about $648 mln
* Company raises about $80 mln from offering
March 21 Borderfree Inc's shares rose
as much as 33 percent in their debut, valuing the e-commerce
technology provider at about $648 million.
Borderfree provides online tools that help U.S. retailers
such as Macy's Inc, Aeropostale Inc and Under
The company raised about $80 million after its offering of 5
million shares was priced at $16 each, the top end of its
expected price range.
Borderfree's shares opened at $21 and rose to $21.25. About
3 million shares changed hands by 1100 ET.
The company, which was formerly known as FiftyOne Inc,
changed its name to Borderfree after acquiring a business unit
with the same name from Canada Post Corp in 2012.
Borderfree's revenue comes from fees paid by customers,
based on a percentage of sales generated through its platform.
Overseas consumers are expected to spend $24 billion on
physical goods from U.S. online retailers in 2014, the company
said, citing a study by Forrester Research Inc.
In its IPO filing, Borderfree said it was seeing a big
opportunity from U.S. retailers looking to tap international
customers through e-commerce offerings.
However, the company faces competition from e-commerce
giants such as eBay Inc, which is helping U.S.
merchants sell oversees, and Amazon Inc, which is
spending heavily on building distribution warehouses outside the
Pitango Venture Capital Group is the biggest shareholder in
Borderfree with a 27 percent stake, followed by Adams Street
Partners, who owns 18 percent.
The company reported a loss of $654,000 for 2013, compared
with a profit of $192,000 the previous year. Revenue, however,
rose about 36 percent to $110.46 million.
Credit Suisse and RBC Capital Markets are among the lead
underwriters for the offering.
(Reporting by Avik Das in Bangalore; Editing by Don Sebastian)