Fast fashion retailer Groupe Dynamite launches $215 million IPO in Canada – BNN Bloomberg

Ashmi Mehrotra, co-head of JP Morgan’s global private equity group, joins us to talk about the outlook for venture capital and the IPO market.

(Bloomberg) — Canadian fast fashion retailer Groupe Dynamite Inc. will begin trading in Toronto on Thursday after a C$300 million ($215 million) initial public offering that will cement its largest shareholder’s billionaire status.

The Montreal-based company said late Wednesday it had signed an agreement with underwriters to offer shares at C$21 a share, the midpoint of the C$19 to C$23 range it announced last week. At this price, the company’s market capitalization would be approximately C$2.3 billion.

Chief Executive Officer Andrew Lutfy owns Groupe Dynamite and will retain about 87% of the company and 98.5% of voting rights, provided the underwriters do not exercise an option to sell additional shares.

The shares are expected to begin trading on the Toronto Stock Exchange on Thursday under the ticker symbol GRGD on an “if, how and when issued” basis, with an IPO closing date of Nov. 26, the company said.

The company, which operates nearly 300 stores in the U.S. and Canada under the Dynamite and Garage brands, had revenue of C$888 million and net income of C$128 million for the 12-month period ended Aug. 3, according to the filing.

The offering is led by Goldman Sachs Canada Inc., BMO Nesbitt Burns Inc., RBC Dominion Securities Inc. and TD Securities Inc., as well as other institutions including Scotia Capital Inc. and Desjardins Securities Inc., members of the underwriting group.

The Canadian IPO market has been grim for the past two years due to a lack of new corporate offerings.