Canada Goose goes on sale in Toronto and New York
Canada Goose presented with an initial public offering of 20 million shares priced at $17 per share under the symbol GOOS, Canadian Press News reports said.
Shortly after markets opened, Canada Goose shares opened at $23.86 on the Toronto Stock Exchange, later sliding to $22.19 as of Mar 16, 11 a.m. ET.
In New York, shares opened at US$18 about 90 minutes after the opening bell and were trading at US$16.75
The outerwear manufacturer said that 12.85 million shares out of the 20 million subordinate voting shares offered, will come from existing shareholders.
The existing shareholders will hold 79 to 81 percent of the company after the sale, depending on if an over-allotment privilege is used by underwriters.
Canada Goose’s warm coats had been popular in Antarctica and fashion industry by trekkers and Its parkas, which retail for up to $1,500, had been worn by celebrities
According to securities filings, the company said, it had a revenue of $290.8 million and net income of $26.5 million in fiscal 2016
The company operated two retail stores in Toronto and New York and its products can be found in 36 countries worldwide. 70 percent of Canada Goose is owned by Investment firm Bain Capital, which it acquired in December 2013.
Canada Goose had faced controversy with People for the Ethical Treatment of Animals (PETA) for its use of coyote fur in its jackets.
PETA bought $4,000 worth of Canada Goose shares -- minimum amount required to contribute to shareholders’ meetings -- PETA spokesperson Ben Williamson told Global News today.
This would allow PETA to go to Canada Goose's annual meetings to submit shareholder resolutions compelling Canada Goose to stop sourcing animal products.
PETA said that it will keep company’s shares until it had seen that enough progress had been made, said Williamson.
When asked, what PETA planned to do with this investment, it said that all the proceeds from the profit would be used for PETA’s non-profit endeavours.
(Reporting by Asha Bajaj)
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