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Aritizia shares rise more than 10% over IPO price on first trading day

Aritzia Inc. shares began trading for the first time Monday, well above the price set in the run-up to the Canadian fashion retailer’s initial public offering.

One-vote subordinate Aritzia shares, which trade under the symbol ‘ATZ’, opened at $18.95, climbed as high as $19, and ultimately closed at $17.71, more than 10 per cent above the IPO price of $16.

The company — which has a network of 75 stores and an online business — won’t get any of the money but its current shareholders are in line to receive at least $380 million after $20 million in fees paid to the underwriters.

Underwriters have the option to buy a further 15 per cent — up to 3.75-million shares — at the same price within 30 days, which could net Aritzia’s majority shareholders up to $437 million and the underwriters up to $23 million in fees.

Boston-based Berkshire Partners and Aritzia founder Brian Hill will retain about 97 per cent of the voting power through multiple-vote shares, which weren’t part of the IPO.

More than 8.5 million of the subordinate shares were traded on Monday.

Article source: http://www.cbc.ca/news/business/aritzia-shares-trading-1.3788958?cmp=rss