Canadian retailer aims for $2.3bn IPO, positioning CEO as industry billionaire

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.