Canada Goose’s shares jump 40% in market debut
bdlive.co.za - Mar 17th 2017, 09:04
Toronto — Canada Goose Holdings shares surged 40% in their trading debut on Thursday after the high-end parka manufacturer raised C$340m ($256m) in an initial public offering.
The maker of C$900 parkas priced the offer above the marketing range on Wednesday, underscoring strong investor appetite for a brand that celebrities have made popular.
By mid-afternoon, the Toronto-listed shares were trading at C$22.30, compared with an IPO price of C$17.00, after opening at C$23.86. The benchmark Canadian stock index was up 0.5%.
Founded in a small Toronto warehouse 60 years ago, Canada Goose was acquired by private equity firm Bain Capital in 2013. The company’s fur-laced jackets and hoods are sold in 36 countries around the world.
The company sold 20-million shares at C$17.00 each after pitching them to investors at C$14 to C$16. Part of the proceeds of the IPO, which valued the company at about C$1.8bn, will go to paying down debt.
Avenue Investment Management portfolio manager Bryden Teich, who did not participate in the IPO, was cautious about the company’s growth prospects.
"It is a very niche product at the high end of the retail market, and the retail market is under pressure overall," Teich said. "In light of an over-indebted Canadian consumer, a really tough retail environment, I have a hard time seeing how it becomes a big growth story."
CIBC Capital Markets, Credit Suisse, Goldman, Sachs & Co and RBC Capital Markets managed the share sale.© BusinessLIVE MMXVII
Consumer-goods manufacturer Libstar aims to raise R1.5bn
25/04/2018 - 08:42
The company plans to list on the JSE on May 9.
Thavhani City mixed-use precinct attracts retail firsts and landmark healthcare facilities
24/04/2018 - 13:22
Thavhani City, the major economic centre in Thohoyandou, Limpopo, is set to be home to the largest flagship NHC medical day care clinic in South Africa and the first Builders Warehouse in the region.
Gucci and Guess settle 9-year legal battle over logo
24/04/2018 - 13:03
Gucci and Guess have finally settled a nine-year legal battle over the intellectual property of their interlocking G logos.
Old Navy to open 60 stores in 2018
24/04/2018 - 10:24
Gap is making a big bet on Old Navy.
AI and the retail revolution
23/04/2018 - 14:21
2018 has been widely touted as the year that practical applications of artificial intelligence reach maturity and begin to impact our day-to-day lives. However, it's not AI creating sentient robots that will be changing our lives in 2018, but instead, it will be how AI is applied within sectors like retail or financial services.