Womenswear retail firm Groupe Dynamite closes oversubscribed IPO

Groupe Dynamite Inc. says it has closed its initial public offering.

The Montreal-based firm behind the Garage and Dynamite retailers says the offering wound up oversubscribed.

As part of the offering, shareholders controlled by CEO Andrew Lutfy sold more than 14.3 million subordinate voting shares for $21 each, giving them aggregate gross proceeds of about $300 million.

The company’s shares closed at $20.32 on the Toronto Stock Exchange on Monday.

A syndicate of underwriters led by Goldman Sachs Canada, BMO Nesbitt Burns, RBC Dominion Securities and TD Securities were granted an overallotment option allowing them to purchase another 2.1 million in shares.

If the option is exercised, it will result in another $45 million in gross proceeds.

The underwriters have 30 days to decide whether to make use of the option.

Groupe Dynamite says the IPO was the first in Quebec in nearly three years and the first Canada has seen in the last year.

This report by The Canadian Press was first published Nov. 26, 2024.

Companies in this story: (TSX:GRGD)