(Bloomberg) — Canadian women’s clothing retailer Group Dynamite Inc. has hired banks to fund an initial public offering that could be marketed 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 jolt the stagnant Canadian IPO market, where only C$700 million ($504 million) has been raised this year, primarily for financial vehicles 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 that they not be identified because the matter is still private. Discussions are ongoing and details of the offering may still change.
Montreal-based Groupe Dynamite operates about 300 stores in the US and Canada. It features the Dynamite and Garage brands as well as online sales locations, and is owned by Quebec businessman Andrew Lufti. The stores sell fashion-forward clothing and advertise using bold, youthful imagery.
Group Dynamite in April promoted former Abercrombie & Fitch Co. executive Stacey Beaver to president and chief operating officer. “The US will continue to serve as a key 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. Canadian generic drugmaker Apotex Inc. is also planning a possible initial public offering next year, Bloomberg News reported.
Lufti is the chief executive officer of Carbonlio, a real estate developer that recently built Royalmount, a luxury mall in Montreal.
–With assistance from Paula Sambo, David Morris and Chunzhi Xu.
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