Last year, the Canadian manufacturer of luxury apparel filed for an initial public offer. Canada Goose has the cold weather on its side to highlight the utility of its Arctic line of products. New York felt the full fury of below-freezing temperatures which only the deluxe parkas can protect citizens from in style. The company has just announced the pricing for its IPO. As a result, the popular animal rights group, PETA, showed an intention to become one of the shareholders of the manufacturer.
The Share Price Is Set at C$17
On Thursday, Canada Goose announced that its initial public offering would start at 200,000,000 subordinate voting shares. Moreover, the shareholders in their turn will get to sell a total of 13,691,846 subordinate voting shares. The price for a share was set at C$17. Moreover, the underwriters are going to benefit a 30-day option. During this period of time, they can purchase 3,000,000 extra subordinate voting shares from those shareholders who want to sell them.
On the other hand, the Canadian Company will not enjoy any of the profits. The manufacturer intends to raise a total amount of C$320 million or $237 million. This would be barely enough to cover a massive budget gap. In 2016, the company recorded a revenue of $291 million while the net profit was of only $27 million. In the background, the company is trying to save its business from a $278 million debt.
The Animal Rights Group Has Hidden Plans
PETA might be against the manufacturer’s practices of using fur in its products. Nonetheless, the organization is going to buy some stakes as soon as Canada Goose goes public. On the other hand, this plan doesn’t reveal intentions to get rich. On the contrary, the animal rights group sees this opportunity as a golden ticket. PETA will purchase enough shares to attend annual meetings of the shareholders.
“The shares purchased will be the minimum amount required to give PETA the right to attend and speak at annual meetings, and to submit shareholder resolutions asking for the company to stop using coyote fur trim and down in its jackets,” a PETA spokesperson stated.
This strategy isn’t new among PETA non-profit organization. It has employed the shareholder activism before to speak up at companies such as Lululemon, Prada, Hermes, and LVMH. The PETA supporters view the production process as cruelty regarding animals.
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