The first rule for any initial public offering is to show some sort of growth. Ideally, it's in the profit column. Investors need reason to get excited about a new stock.
Vancouver's Aritzia Inc., which filed for an IPO Thursday, checks that box.
In fiscal 2016, which ended in February, the women's fashion retailer saw its profit nearly double to $32-million. The best part: That jump was driven by a 17-per-cent boost in same-store sales – or those from stores that were open during the previous fiscal year. It isn't relying solely on an expensive expansion strategy to juice revenue.
Aritzia has also been building some buzz, which is crucial in retail. The chain's expanding in the United States, where it now has 18 stores, and a clever public relations strategy has put the retailer on the radars of key stylists – who then put its clothes on their artists. Taylor Swift was recently spotted wearing the retailer's Moxon dress. Bonus point: It was on date with beau Tom Hiddleston.
So why the secrecy surrounding the IPO? The underwriters behind it – CIBC World Markets, Merrill Lynch Canada and TD Securities – are being coy about deal size, releasing very little of the typical information used to help market an offering. Story
Billionaire investor Seymour Schulich buys more shares in Pengrowth
Canadian billionaire investor Seymour Schulich has snatched up more shares in Pengrowth Energy Corp., boosting his ownership of the company as oil prices show tentative signs of recovery.
Mr. Schulich announced on Thursday that he has purchased an additional two million shares of the Calgary-based company on the open market, bringing his overall stake in the oil sands producer to 18.6 per cent. He previously owned nearly 17 per cent of the company.
It's the latest vote of confidence by Mr. Schulich in Pengrowth, which operates the steam-driven Lindbergh oil sands project. The co-founder of Franco-Nevada gold company has been steadily increasing his position in the oil sands producer since March, when he announced he had acquired a 14.7-per-cent stake in the company. Story
CMHC bond sale finds buyers eager for triple-A rated Canadian debt
Canada Mortgage and Housing Corp. launched a bond sale Tuesday with a minimum goal of raising $3-billion for the Crown corporation, and ended up raising $5.25-billion on Wednesday from a financing that caught the attention of yield-hungry investors.
The CMHC tapped its triple-A rated Canada Mortgage Bond program and sold $2.5-billion of 10-year bonds, up from an original expectation of $2-billion, and $2.75-billion of five-year floating rate debt, well above the $1-billion minimum set when the auction began on Tuesday. The 10-year bonds pay 1.9-per-cent interest and the floating-rate debt pays an interest rate that is 14 basis points above the benchmark government of Canada short-term interest rate. There are 100 basis points in a percentage point. Story
DAILY DEALS
Aritzia LP, the Canadian women's fashion retailer, filed for an initial public offering on the Toronto Stock Exchange. Story
United Bankshares Inc. will buy fellow bank Cardinal Financial Corp. for about $912-million in a push to expand in the Washington, D.C., metro area. Story
Gannett Co. has privately sweetened its bid for Tronc Inc., according to people familiar with the matter, hoping to overcome resistance to a sale from the parent of the Chicago Tribune and Los Angeles Times. Story
ON THE MOVE
Royal Bank of Canada has shaken up its investment banking team, promoting its long-time mining chief, Gordon Bell, to vice-chairman of capital markets and laying off the mining group's managing director. Story
IN CASE YOU MISSED IT
Tim Kiladze on how the Big Six banks need to share more risks on mortgage lending. Story
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