Aritzia files for and IPO on Toronto Stock Exchange

Canadian womenswear chain Aritzia LP filed Wednesday for an initial public offering on the Toronto Stock Exchange.

As reported by Bloomberg and Reuters, private equity backer Berkshire Partners LLC will sell shares in the initial public offering of shares (IPO), together with Aritzia founder and CEO Brian Hill, the company said in a filing Wednesday.

Aritzia decided to take things rapidly, as barely a couple of days after reports broke the Toronto-based retailer´s intentions of looking into the convenience of taking the business public, it actually filed for that IPO.

Aritzia´s IPO would be the second major float at the Canadian Stock Exchange this year

Aritzia’s net revenue in the year to May 29 was 571 million Canadian dollars, while net income came in at 38 million Canadian dollars, according to the prospectus. It cited consumer confidence, unemployment levels and “rapidly shifting fashion and seasonal trends” among risk factors for investors to consider.

Aritzia’s decision to go public comes amid the slowest year to date for Canadian IPOs on record, according to data compiled by Bloomberg. The company will not receive any proceeds from the sale of the subordinate voting shares, according to the filing, which did not say how much the IPO planned to raise.

This is Aritzia first major financial move since private equity firm Berkshire Partners bought a majority stake in the company for an undisclosed sum in 2005.

CIBC World Markets Inc., Bank of America Corp.’s Merrill Lynch Canada unit and Toronto-Dominion Bank’s TD Securities Inc. are leading the sale.

Launched in Vancouver in 1984, Aritzia has more than 70 retail locations across North America, including in New York, Toronto, Montreal, Boston, Chicago, and San Francisco.

Image: Aritzia Web