Groupe Dynamite debuts 215 million dollar IPO

Canadian fashion retailer Groupe Dynamite has launched its 300 million Canadian dollar (215 million US dollar) initial public offering on the Toronto Stock Exchange, which upon entering shares fell 2 percent.

The company began trading on Thursday under the ticker symbol GRGD, with underwriters agreeing to trade over 14.2 million subordinate voting shares at a price of 21 dollars per share.

The price would put Groupe Dynamite’s market capitalisation at 2.3 billion Canadian dollars, with chief executive officer, Andrew Lufty, to retain a stake worth around 1.9 billion Canadian dollars.

The offering was led by Goldman Sachs Canada Inc., BMO Nesbitt Burns Inc., RBC Dominion Securities Inc. and TD Securities Inc., which acted as joint lead bookrunners.

This group will also have the option of issuing an additional 2.14 million shares up to 30 days after the IPO closes, which is expected to occur on November 26, 2024, subject to customary closing conditions.

Groupe Dynamite’s listing is the first corporate IPO in Canada since February 2023, when Lithium Royalty Corp raised 150 million Canadian dollars.