Aritzia is going public to expand its place in the retail market.
The Canadian womenswear chain filed an initial public offering of subordinate voting shares on the Toronto Stock Exchange Wednesday. CEO Brian Hill and Boston-based private equity firm Berkshire Partners will both share sales in the IPO. Until a final prospectus receipt is issued, there will be no acceptance of any offer or sale of the subordinate voting shares.
According to the IPO, Aritzia achieved $445 million (571 million Canadian dollars) in net revenue and an estimated $29 million (38 million Canadian dollars) in net income for the first five months of 2016. Investor risk factors listed in the filing included “changes in the general economic conditions and consumer spending in Canada, the United States and other parts of the world” and the “inability to grow net revenue or meet other financial targets”.
Founded 32 years ago by Brian Hill and his family, Aritzia is one of Canada’s most popular boutique apparel companies, targeting style-conscious females ages 15 to 45, and today has more than 70 stores in North America. In 2005, when Aritzia had only 18 locations, Berkshire invested $87 million to support its growth. After launching e-commerce in 2012, Aritzia expects to complete another milestone this year when it debuts international shipping for its online business.