Canada Goose’s IPO Launch Surges in Market

Canadian winter clothing company Canada Goose Holdings Inc. just launch its initial public offering in the stock market and generally received bullish sentiments from investors, surging almost 40% upon its first trading day.

The company’s target price offer was placed at US$ 12.78 or CA$17 but traded as high as 41% to $18 per share before closing 26% higher to $16.08 in the NYSE within the trading session. At the end of the session, Canada Goose was able to raise a total of US $225 million (CA$340 million) from the 20 million shares it offered to the market.

Canada Goose launched its IPO both on the New York Stock Exchange and Toronto Stock Exchange with a ticker symbol of ‘GOOS’.

The following market session on Friday, GOOS stock was up 9.15% or $1.48, to $17.61 per share, as it continues to attract investors over its good performance in previous financial statements.

On Canada Goose’s regulatory filing, it has stated that it saw its revenues of $290.8 million and a net income of $26.5 million. It’s annualized revenue growth rate  from 2014 to 2016 climbed 38.3%.

The Canada-based company is well known for its use if coyote fur and duck feathers and downs among its products, being among the higher-end clothing merchandise in the industry. In 2015, the company launched its national e-commerce platform, while also opening its first store branch in the US in New York last year, all with the goal to achieving to improve its global expansion.

Meanwhile, the IPO launch of the clothing company has had several challenges as it has been targeted by animal right activist organization People for the Ethical Treatment of Animals (PETA), protesting to people to not support the company’s procedures to producing its products, as it harms innocent animals like coyote and ducks, as a signature material for some of its merchandise.

PETA protestors marched outside the NYSE building during the company’s IPO launch most dressed in coyote masks, while waving signboards, some of which read “Trading in Lives is Bad for Business” and “Indecent Public Offering.”

Despite PETA’s vocal protest against Canada Goose’s business ways, the organization has bought shares during the IPO of the clothing company with the hopes to have a vote during Canada Goose’s shareholders meeting. PETA stated that it is among their goal as now part owner of the company is to pressure it into shifting from using animal furs to something less cruel means.

Canada Goose, in the meantime, was quick to respond to the rising challenge saying, “We have been the target of activists in the past, and may continue to be in the future. Our products include certain animal products, including goose and duck feathers in all of our down-filled parkas and coyote fur on the hoods of some of our parkas, which has drawn attention of animal welfare activist. In addition, protestors can disrupt sales at our stores, or use social media or other campaigns to sway public opinion against our products. If any such activists are successful at either of these our sales and results of operations may be adversely affected.”

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