Montreal fashion brand Groupe Dynamite launches IPO on Toronto Stock Exchange
One of first major Canadian companies to go public after years-long IPO drought
Groupe Dynamite, the Montreal-based company behind women's fashion retailers Dynamite and Garage, has launched a $300-million initial public offering on the Toronto Stock Exchange.
The company will begin trading its subordinate voting shares on Thursday under the ticker GRGD, having set an offering price of $21 per share through an agreement with its underwriters. The IPO is scheduled to close on Nov. 26.
Groupe Dynamite is expected to have a market capitalization of $2.3 billion, positioning its CEO and owner, Andrew Lufty, as a billionaire, according to Bloomberg. Lufty will retain 87 per cent ownership of the company.
The underwriting group, led by Goldman Sachs Canada Inc., BMO Nesbitt Burns Inc., RBC Dominion Securities Inc., and TD Securities Inc., will also have the option to issue an additional 2.14 million shares within 30 days after the IPO closes.
Groupe Dynamite’s IPO marks one of the first major public offerings by a Canadian company following a period of limited activity in the Canadian market.
Founded in 1975 with a single store in Montreal, Groupe Dynamite has expanded its presence to nearly 300 stores across Canada and the United States. The company now employs 6,000 people.
