The Toronto-based Canada Goose Holdings Inc., maker of luxury coats has filed for IPO (Initial Public Offering). The retailer, famous for its coats with coyote-lined hoods, has Bain Capital as the majority stake holder in the company. Bain had invested in December 2013 and if we consider from that point of view this IPO is a quick one for it. Planning to raise $100 million, this Toronto-based retailer has plans for two classes of shares with listings in two different cities. It plans to list it on Toronto Stock Exchange as well as New York Stock Exchange with GOOS as symbol.
The filing specifies that Bain will continue to have a controlling interest even after raising the corpus through IPO. The company has reported revenue of $270 million and a net income of $34.5 million for the nine months that ended on 31 December 2016. The company has disclosed in its filing that in the past three years the revenue is compounding at 38.3% annually and the net income in this period has tripled.
With the $100 million that it will raise through IPO, this company that’s operational since 1957 plans to pay down its debt, and use it as a working capital to boost its growth plans. When it started in 1957, it started as one that specialists in raincoats, woollen vests etc., but over time it migrated to the luxury segment catering to consumers who are deep pocketed. Today, it’s down coats are priced at $1000 and the students, mostly the college goers or the high school ones, are really inclined to have it in their wardrobe.
Starting in Toronto, the brand now has a presence in 36 countries across the globe through a wide network of about 2500 wholesalers. When any business expands to new areas, there is always an associated risk from existing players of the market. When Bain invested in the company, it was valued at $250 million and after this IPO they expect it to touch the valuation of $2 billion. Bain has 70% percent stake in the company and after the IPO too, Bain and Dani Reiss, the company’s chief executive will have full control of the voting shares.
The markets expect that this year the IPO market will do well after a dull last year. A lot of well-known companies have filed for IPO listings and the investors will have many options in the days to come.