Canada Goose Files for IPO in New York and Toronto

Updated on
  • Company said planning to raise as much as $300 million in IPO
  • Retailer reported net income of $30.1 million in fiscal 2016

Canada Goose Holdings Inc. will be selling more than just $900 parkas in New York and Toronto this year.

The retailer, known for its trademark coats with coyote-lined hoods, filed for an initial public offering Wednesday, with plans for a dual listing in the two cities.

The Toronto-based company, which filed with a $100 million placeholder amount used to calculate fees, will seek to raise as much as $300 million in the sale, people familiar with the matter have said, for a company valuation of about $2 billion.

Canada Goose is backed by Bain Capital, which will continue to own a controlling interest in the company following the IPO, according to the prospectus.

The company plans to list its shares on the New York Stock Exchange and Toronto Stock Exchange under the symbol GOOS. Proceeds from the IPO will be used to pay down debt and for working capital and general corporate purposes, the filing shows.

For the fiscal year ended March 31, 2016, revenue was $290.8 million. Adjusted net income for the period was $30.1 million. Over the past three years, revenue grew at a compound annual rate of 38.3 percent, the filing shows, while net income almost tripled over the same period.

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.

Risks to the business include the expense of expanding into new markets and competition. The brand was sold in 36 different countries through about 2,500 wholesalers at the end of December, the prospectus shows.

In 2013, when Bain acquired a majority stake in Canada Goose, the company was valued at about $250 million, people familiar with the matter have said. Terms weren’t disclosed at the time.

After a slow 2016 for IPOs, the market has started to show signs of life. Disappearing-app maker Snap Inc. filed this month for a listing on NYSE, and is seeking a valuation of as much as $25 billion, people familiar with the matter have said.

Canadian Imperial Bank of Commerce, Credit Suisse Group AG, Goldman Sachs Group Inc. and RBC Capital Markets will be leading Canada Goose’s share sale, the filing shows.

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