Canadian clothing retailer files for IPO
Canadian retailer Roots plans massive expansion
Canadian clothing retailer, Roots, is planning to go public. It has applied to list on the Toronto Stock Exchange under the symbol ROOT. It plans huge expansion across international
The company operates 136 stores in Taiwan and China in partnership. It plans a number of new stores in North America that includes 10 stores in Canada and 14 in the United States by the end of its 2019 financial year. The retailer
“When you have such large expansion goals and projections, then it makes sense to go forward with an IPO,”
The initial public offering would provide some of the capital necessary to fund the expansion plan.
The price and the number of shares being sold by Searchlight, Budman and
The company’s IPO comes against “a
Investor sentiment is quite positive, equity markets have a lot of momentum behind them and stock prices are up across the board, he said.
Additionally, Roots disclosed financial growth in its preliminary prospectus that’s quite strong, he said, a good sign that it’s managing ongoing disruption to the retail industry.
Shares of Toronto-based winter-coat maker Canada Goose have soared more than 40 per cent since they began trading earlier this year, but shares of Aritzia have struggled and fallen well below their IPO price.
Fehr said that a company with a niche offering like Canada Goose is more likely to succeed.
Investors may be more comfortable betting on a luxury retailer whose parkas sell for upwards of $1,400, added Szames, than on Aritzia, which sells its goods at a price range where many retailers are struggling.
Roots, which points to its leather goods and footwear products as a possible area of expansion, could position itself in a
However, both IPOs had one thing in common, she said, highlighting that each stock soared on the first day of trading.
“We’re going to see that surge,”
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