Groupe Dynamite launches IPO on Toronto Stock Exchange

Groupe Dynamite, the Montreal-based company behind the Dynamite and Garage women’s fashion brands, has launched a $300 million initial public offering (IPO) on the Toronto Stock Exchange.

Groupe Dynamite launches IPO on Toronto Stock Exchange

The company began trading subordinate voting shares on Thursday under the ticker GRGD, priced at $21 per share, as outlined in a press release. The IPO is set to close on November 26. Groupe Dynamite’s market capitalization is expected to reach $2.3 billion, positioning its CEO and owner, Andrew Lufty, as a billionaire, according to Bloomberg. Lufty will retain 87% ownership of the company.

IPO details

The underwriting syndicate, which includes Goldman Sachs Canada Inc., BMO Nesbitt Burns Inc., RBC Dominion Securities Inc., and TD Securities Inc., among others, has an option to issue an additional 2.14 million shares within 30 days of the IPO closing. This marks one of the first significant Canadian IPOs following a prolonged dry spell in the country’s market. Groupe Dynamite was founded in 1975 with a single Montreal store and has since expanded to nearly 300 locations across Canada and the United States, employing around 6,000 people.