Aritzia Has Filed IPO in the Toronto Stock Exchange
Aritzia, the 30-year-old fashion company from Canada, has officially filed IPO in the Toronto Stock exchange. The fashion company has over 75 stores in Canada and the U.S., with about 16 in the United States alone and a growing online retail presence that is catching popularity. Despite the competition from big fashion companies like H&M and Zara, Aritzia has managed to thrive.
IPO stands for initial public offering, which means that the stock of a private company like Aritzia is now available to be purchased by the public. Reportedly, the company will not receive any proceeds from the sale of the subordinate voting shares. This means that the company offers different types of classes of shares to gain equity capital from investors without providing too much voting power to the shareholders. The company basically is not taking a risk at all when they offer IPO’s to the public in case the business doesn’t perform well.
Aritzia first opened their retail stores in the U.S in November 2007 in Seattle and Santa Carla, California. The company on May 29th, 2016 has reported an overall profit of 38.1 million dollars compared to the 16.5 million they earned on March 1st, 2015. Aritzia reportedly started as a single store in an upscale Vancouver mall in 1984. Since then CEO Brian Hill states the company has become one of the most highly rated retailers in Canada.
The fashion retailer is continuing to expand their company by allowing their products to be shipped internationally this fall. The company hopes in the future to earn a new revenue between 1.1 to 1.2 billion dollars in the next five years. They plan to achieve this high net profit by opening a minimum of 25 to 30 new retail stores in the future.
Even though IPO’s sales this year have been slow in the Canadian stock exchange, Aritzia is confident that they will earn more profit from the company’s IPO sales to new public investors.