(Bloomberg) — Groupe Dynamite Inc., a Canadian women’s clothing retailer, has hired banks for an initial public offering that will likely go to market in the coming weeks, according to people familiar with the matter.
The company is working with major Canadian financial institutions and a U.S. bank on the offering, the people said. If successful, it would provide a jolt to Canada’s stagnant IPO market, which has raised just US$700 million ($504 million) this year, largely for financial instruments such as exchange-traded funds, data compiled by Bloomberg show .
The IPO could value the company at C$1 billion or more, according to the people who spoke on condition they not be identified because the matter is still private. Discussions are still ongoing and the details of the offer are subject to change.
Groupe Dynamite, based in Montreal, operates nearly 300 stores in the U.S. and Canada. It has locations under the Dynamite and Garage brands, as well as online sales, and is owned by Quebec businessman Andrew Lufty. The stores sell fashionable clothing and advertise with bold, youthful images.
Groupe Dynamite promoted former Abercrombie & Fitch Co. executive Stacie Beaver to president and chief operating officer in April. “The US will continue to serve as a core focus and growth market for the company’s future ambitions,” the company said in a statement announcing the appointment.
A company spokesperson declined to comment.
The largest new listing in Canada in 2024 is Mercer Park Opportunities Corp., a special purpose acquisition company that raised C$315 million in June. Bloomberg News reported that Canadian generic drug manufacturer Apotex Inc. is also making plans for a possible IPO next year.
Lufty is CEO of Carbonleo, a real estate developer that recently built Royalmount, a luxury shopping center in Montreal.
–With help from Paula Sambo, David Morris, and Chunzi Xu.
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