Aritzia Raises $400 Million in Canada’s Largest IPO of Year

TORONTO, Canada —Aritzia Inc., the Canadian women's fashion retailer, raised C$400 million ($302 million) in its initial public offering, the nation's largest IPO since October's C$1.83 billion sale of electric utility Hydro One Ltd.

The company, shareholder Berkshire Partners and founder Brian Hill sold 25 million subordinate voting shares for C$16 each, according to sale documents, the high end of the C$14 to C$16 marketed range.

The price values the Vancouver-based retailer at C$1.87 billion, based on 117.1 million shares outstanding as cited in documents.

Aritzia was started in Vancouver in 1984 by Hill, a third-generation retailer and current chief executive officer. Berkshire Partners, a Boston-based private equity firm, bought a majority share in the retailer for an undisclosed sum in 2005.

The company, which sells clothes and accessories aimed at women aged 15 to 45, has 75 locations across North America, including in New York, Toronto, Montreal, Boston, Chicago and San Francisco, according to its regulatory filing.

Aritzia’s shares will be listed on the Toronto Stock Exchange under ticker symbol ATZ. The stock will start trading next month, after the transaction closes.

Canadian Imperial Bank of Commerce, Bank of America Corp.’s Merrill Lynch Canada unit and Toronto-Dominion Bank led the sale.

Banks arranging the sale have an option to sell an additional 15 percent of the offering, which would lift the total to C$460 million.

By Doug Alexander, with assistance from Scott Deveau; Editors: Peter Eichenbaum, David Scanlan, Jacqueline Thorpe and Elizabeth Wollman.