Canada Goose Holdings Inc., the maker of $900 parkas worn by celebrities from Toronto rapper Drake to Blue Jays slugger Jose Bautista, is seeking to raise as much as C$320 million ($240 million) in its initial public offering.
The Toronto-based retailer and its backers, which plan to list shares both in the company’s home city and in New York, are offering 20 million shares for C$14 to C$16 each, according to a filing Wednesday. At the top of that range, Canada Goose would be valued at about C$1.7 billion. The company will offer 7.15 million subordinate voting shares while shareholders will offer an additional 12.85 million shares.
Even if shares price at the bottom of the range while 12-month trailing earnings per share grow by a below-sector 10 percent, Canada Goose would still rank third among its luxury-goods selling peers on valuation, Bloomberg Intelligence analyst Maja Rakic wrote in a note Wednesday.
The company would have a price-to-earnings multiple of 36 times, behind Hermes International’s 39 times and Brunello Cucinelli SpA’s 37 times.
“Perhaps ambitious, the multiple implies the maker of winter outerwear has strong earnings potential,” Rakic wrote. “Canada Goose’s IPO appears well-timed given luxury-goods valuations point to a sector recovery.”
Bain Control
Canada Goose is backed by Bain Capital, which will continue to own a controlling interest in the company following the IPO, according to the filing. Under the planned share structure, Bain and DTR LLC, controlled by Canada Goose Chief Executive Officer Dani Reiss, will own all the multiple-voting shares in the company in a 70-30 split respectively.
That’ll give Bain and DTR a collective 98 percent of the voting rights with 81 percent of the equity, or 97 percent if banks leading the IPO exercise an overallotment, the filing shows.
Snap Inc., the disappearing-photo app maker that is expected to price its own IPO Wednesday, is giving even less control to its shareholders. Snap is listing non-voting shares in its debut, giving shareholders no say over things like nominating directors or executive compensation.
Canada Goose was founded in a small warehouse in Toronto in 1957 as Metro Sportswear Ltd., specializing in woolen vests, raincoats and snowmobile suits. In recent years it has shifted its focus to luxury consumers, targeting shoppers who drive Land Rovers rather than dogsleds.
You cannot post new topics in this forum You cannot reply to topics in this forum You cannot edit your posts in this forum You cannot delete your posts in this forum You cannot vote in polls in this forum You cannot attach files in this forum You can download files in this forum
Global Announcement:
:
Jump to:
