Royal Bank of Canada landed a minor role, and a small share of the financial benefit, in Shopify Inc.’s $2-billion capital raise this week – a deal dominated by Wall Street banks.
Goldman Sachs and Citigroup co-led the Canadian technology giant’s two offerings and stand to earn more than 80 per cent of the combined US$27.3-million in discounts and commissions, with Credit Suisse claiming most of the rest. Shopify raised US$800-million in convertible senior notes and sold 1.1 million subordinate voting shares at US$900 apiece for gross proceeds of US$1.79-billion.
According to regulatory documents filed Thursday, RBC, which was added late as a co-manager on the deal, was only allocated US$32-million of the debt instruments and 47,143 of the shares to distribute to clients. That means it stands to earn about 4 per cent of the commissions, or …