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
Grant Pattison to lead Edcon from June
26/05/2017 - 15:34
Current CEO Bernie Brookes’s contract, which was to expire in September, has been extended until the end of January 2018.
Edcon stuck between rocky loans and a hard trading place
26/05/2017 - 10:10
Credit sales have dwindled to 35% of total sales, down from 51% five years ago — and there is little hope on the horizon as consumers feel the pinch
TFG to buy Australian menswear group
25/05/2017 - 10:27
Holding company of fashion chain Foschini is acquiring Retail Apparel Group for up to R3bn.
DIS-CHEM: Off to a healthy start
25/05/2017 - 09:57
The pharmacy franchise has done very well in its first year of listing and is on an aggressive store roll-out.
Popping up is good for business
23/05/2017 - 15:39
There’s no better way to do market research than by putting yourself and your product out there on the street. If you sell like crazy, you can safely assume that people want what you have to offer. That’s how simple it should be, especially in these times of ‘lean business models’ as the necessary approach to starting up a business.