Canada Goose’s shares jump 40% in market debut
bdlive.co.za - Mar 17th, 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
Sainsbury’s is playing the long game
21/11/2017 - 13:34
Sainsbury’s management appeared unphased after emerging as the underperforming grocer this quarter. Should investors be worried? In the short term, Sainsbury’s may struggle, but they have solid long term prospects.
Shoppers set to spend over £10bn in this year’s Black Friday bonanza
21/11/2017 - 11:47
Higher prices and increased retailer participation will drive Black Friday spend this year with total sales over the period set to rise 3.8%.
This year’s Black Friday promises to be ‘best ever’
21/11/2017 - 11:26
Economist Mike Schussler said he expects to see large numbers of consumers spending on Black Friday despite the dire economy.
Black Friday, Cyber Monday 2017 reflect growing digital evolution and appetite for seamless digital experiences
21/11/2017 - 11:16
With digital transformation initiatives permeating everything business does, the Black Friday and Cyber Monday period this year is expected to illustrate just how far online retailers have come in embracing Availability.
What are South Africans expecting this Black Friday
21/11/2017 - 11:03
We’ve all heard the stories about Black Friday in the US - all the latest goods at crazy low prices - but are South Africans experiencing the biggest day on the shopping calendar in the same way? Kevin Tucker, Founder and CEO of PriceCheck, Africa’s most popular comparison and discovery service, says there’s no doubt about it.