Outdoor Down Jacket Brand Canadian Goose Raises IPO Issue Price

Canada's lightweight luxury brand Canada Goose (Canada goose) also traded on the Toronto stock exchange and the New York stock exchange in March 2nd, with the code "GOOS".

On the eve of the first public trading day, Canada Goose has raised the issue price of IPO to 14~16 Canadian dollars (about 10.45 to 11.95 US dollars) per share, including the secondary shares that the Underwriters can purchase separately, and 23 million shares have been sold on the market.

Among them, the company sells 7 million 100 thousand shares, the largest shareholder of Bain Capital, the founder of the brand, and the chief executive, Dani Reiss, to sell the remaining 12 million 900 thousand shares.

According to the upper limit price of the price range, the scale of the financing is up to 275 million US dollars, which is much higher than the 100 million US dollar allotment scale in the prospectus, and the market value of Canada Goose will reach 3 billion 300 million US dollars, which is obviously higher than the 2 billion dollar estimate which the analysts had expected.

Canada Goose plans to use the money to repay some of its debts.

As of December 31, 2016, the company's total liabilities amounted to 278 million 100 thousand Canadian dollars.

The Canadian Empire commercial bank's capital market department, Credit Suisse Group, Goldman Sachs Group, Royal Bank of Canada capital market and other joint underwriters.

In the prospectus, the company elaborated its core competitive advantages: real brand stories, uncompromising technology, loyal customer groups, proud of "made in Canada", flexible supply chain, multi-channel distribution, passionate and responsible management team.

"We have built a solid foundation for Canada Goose to become a global outdoor brand that we dream of."

The document points out that in the 2014~2016 fiscal year, Canada Goose achieved rapid growth:

Sales average annual compound growth rate of 38.3%

Net profit compound annual growth rate of 196%

Adjusted EBITDA average annual compound growth rate of 85%

Gross profit margin increased from 38.6% to 50.1%

Adjusted profit margins before interest tax depreciation and amortization increased from 10.4% to 18.7%

To maintain growth momentum, Canada Goose plans to further enhance brand influence, consolidate the wholesale network, expand the direct selling channel dominated by e-commerce, and expand new products outside the jacket.

Up to now, the company has two direct outlets, located in New York and Toronto respectively.

In addition to Canada Goose, New York fashion brand J.Jill is also in the preparatory stage of listing.

(see "ornate ambition" previously reported: after three passes, New York fashion brand J.Jill applied for IPO, valued at $800 million).

Although the stock market has hit a new high, it is still a low season for Wall Street.

Many fashion brands are faced with a downturn in retail sales, weak sales in holiday shopping season, and a squeeze in entity sales for e-commerce sales.