Canada Goose Shares Soar in Market Debut

Canada Goose Holdings Inc. (TSX:GOOS)(NYSE:GOOS) shares officially debuted on both the Toronto and New York stock exchanges on Thursday, getting off to a very impressive start.

Shares traded hands at $21.65 in Toronto during late-morning trading, a 44.3% gain versus the IPO price of $15 per share. The maker of $900 winter jackets preferred by celebrities like Kate Upton and Jose Bautista offered 20 million shares to investors in its market debut, with nearly 13 million coming from existing shareholders.

Existing shareholders will still hold approximately 80% of the company’s shares after the IPO is officially completed. The largest shareholder is Bain Capital, which still holds some 70% of the company it acquired in 2013 for $250 million.

The current valuation implies the company is worth a little under $1.8 billion. It did $290.8 million in revenue during 2016, posting a profit of $26.5 million. This makes Canada Goose one of the most expensive stocks in North America, although bulls will argue the company’s growth profile justifies the lofty valuation.

The company plans to further stimulate growth by expanding into different products, including knitwear, footwear, hats, gloves, travel gear and bedding in the upcoming years, according to its IPO prospectus. It also plans to open more retail locations; it currently has just two, located in Toronto and New York.

Canada Goose has also gotten into trouble with various animal rights groups over the years for the use of coyote fur in its jackets. The group People for the Ethical Treatment of Animals (PETA) is planning to buy a small position in the company so it can have a voice at the company’s annual meetings.