The Canadian retailer launches IPO with dual-class shares, targeting $300m in new funding
Canadian women’s clothing retailer Groupe Dynamite Inc. launched its initial public offering (IPO) with a dual-class share structure, valued at $2.3bn, a move expected to position its CEO, Andrew Lutfy, as a billionaire, according to BNN Bloomberg.
In public filings, Groupe Dynamite—the company behind the Garage and Dynamite brands—revealed plans to offer subordinate voting shares priced between $19 and $23 per share, aiming to raise about $300m at the midpoint.
If shares are priced at $21, the company’s market capitalization would be $2.3bn, bringing the value of Lutfy’s stake to around $2bn.
Lutfy will retain approximately 87 percent of the company and control 98.5 percent of the voting rights, assuming underwriters do not exercise an option to sell more shares.
The IPO will list on the Toronto Stock Exchange under the symbol GRGD. Major institutions including Goldman Sachs Canada Inc., BMO Nesbitt Burns Inc., RBC Dominion Securities Inc., and TD Securities Inc. are leading the offering, with additional support from Scotia Capital Inc. and Desjardins Securities Inc.
Employing around 6,000 people, Groupe Dynamite operates nearly 300 stores across Canada and the US, offering “fashion-forward” clothing marketed with “bold, youthful imagery.”
The IPO filings show that Groupe Dynamite recorded $888m in revenue and a net income of $128m over the 12 months ending August 3, while reporting $469m in debt.
Lutfy, a 60-year-old Montreal businessman, led a rapid revenue boost by restructuring the company’s real estate leases during creditor protection amid the Covid pandemic.
Starting his career as an 18-year-old part-time stockroom clerk at Garage, Lutfy is now also CEO of Carbonleo, a real estate developer behind Montreal’s Royalmount luxury mall.
The mall, a $1.5bn project halted during the pandemic, is one of Carbonleo’s recent ventures, as reported by Montreal news outlet La Presse.
Additionally, Lutfy’s family heritage in the clothing industry traces back to his grandfather, Joseph Chamandy, the founder of Gildan Activewear Inc., a major Canadian clothing manufacturer.
