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Tags: Parka | Maker | Canada Goose | Shares | Stock Market Debut

Parka Maker Canada Goose's Shares Jump 40 Percent in Stock Market Debut

Parka Maker Canada Goose's Shares Jump 40 Percent in Stock Market Debut
(Dollar Photo Club)

Thursday, 16 March 2017 11:45 AM EDT

Canada Goose Holdings shares surged 40 percent in their trading debut on Thursday after the high-end parka manufacturer raised C$340 million ($256 million) 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 1446 GMT, 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 percent.

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$1.8 billion, 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.

© 2024 Thomson/Reuters. All rights reserved.


InvestingAnalysis
Canada Goose Holdings shares surged 40 percent in their trading debut on Thursday after the high-end parka manufacturer raised C$340 million ($256 million) in an initial public offering.
Parka, Maker, Canada Goose, Shares, Stock Market Debut
245
2017-45-16
Thursday, 16 March 2017 11:45 AM
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