Luxury parka maker Canada Goose's shares soar in market debut
By Denny Thomas and Fergal Smith
TORONTO (Reuters) - Canada Goose Holdings Inc's GOOS.TO GOOS.N shares surged as much as 40 percent in their market debut on Thursday after the high-end coat manufacturer raised C$340 million ($256 million) in an initial public offering.
The maker of C$900 parkas priced its IPO above the marketing range on Wednesday, underscoring strong investor appetite for a brand that celebrities have made popular.
Portfolio Management Corp Managing Director Norman Levine said the surge in Canada Goose shares did not surprise him, but he wondered whether they would remain at that level.
"The history of new issues is not good in Canada," he said.
Canada Goose's fur-laced jackets and hoods are sold in 36 countries around the world, but about 68 percent of the Toronto-based company's 2016 revenue came from Canada and United States.
The company said in its IPO prospectus that it wanted to expand its geographical footprint and had identified Germany, Italy and Scandinavia as key markets.
Founded in a small Toronto warehouse 60 years ago, Canada Goose was acquired by private equity firm Bain Capital in 2013. 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$1.8 billion, will go to paying down debt. Continued...