Trendy Outerwear Maker Canada Goose Preparing for IPO
October 07 2016 - 3:20PM
Dow Jones News
Canada Goose, the maker of trendy down-filled parkas that cost
$1,000 apiece, is preparing for an initial public offering, in a
sign that an uptick in the new-issue market could continue.
The Canadian company is interviewing potential underwriters for
an offering that could value it at around $2 billion, according to
people familiar with the matter. That would put it on track for a
debut early next year. There is no guarantee an offering will take
place as any number of factors, like a renewed bout of stock-market
volatility, could get in the way.
Should Canada Goose pull off the share sale, it would give it
broader access to capital for growth and provide a path for
private-equity firm Bain Capital to begin exiting its investment in
the apparel company.
Founded in 1957 as Metro Sportswear Ltd., Canada Goose got its
start making woolen vests and snowmobile suits from a small
warehouse in Toronto. Over the years, it found a niche following
among film crews shooting in frigid climes. Lately, it has
attracted fashion-savvy consumers looking for winter-weather gear
and willing to pay a hefty price for it. In May, the company
announced its first stand-alone retail stores, in Toronto and in
New York's tony Soho neighborhood.
Canada Goose sold a majority stake to Bain in 2013 for an
undisclosed sum. Dani Reiss, the company's chief executive and
grandson of its founder, Sam Tick, retained a significant minority
stake.
Trendy apparel brands have benefited from robust investor demand
lately. Lululemon Athletica Inc.'s stock is up 11% this year, while
shares of Moncler SpA, a clothing maker that has large network of
retail stores, are up 17%. Under Armour Inc. has risen more than
twentyfold since its 2005 IPO, though the stock is down from its
September 2015 high.
The IPO market is starting to show signs of life after suffering
through a sluggish year, with 17 companies selling shares on U.S.
exchanges in September, according to Dealogic. That makes it one of
the busiest months this year. Yet despite the pickup, U.S.-listed
IPO activity is still on pace for its slowest year since 2009.
Should the recent upturn be sustained, it would be good news for
firms like Bain that depend on the IPO market to exit investments
and return cash to their own investors.
One of the most highly anticipated debuts this year is that of
another hot consumer brand, Yeti Holdings Inc., which makes
high-end coolers.
Write to Matt Jarzemsky at matthew.jarzemsky@wsj.com and Maureen
Farrell at maureen.farrell@wsj.com
(END) Dow Jones Newswires
October 07, 2016 16:05 ET (20:05 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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