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Canada's Roots Prices IPO

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Canadian apparel maker Roots Corp. has priced its planned Toronto initial public offering at a range of C$14 to C$16 per share, seeking to raise about C$200 million. The IPO reportedly values the company at as much as C$672 million.

As per reports, the company has an ambitious international expansion plan after the IPO, aiming to boost sales to as much as C$450 million by fiscal 2019.

The IPO proceeds of C$200 million will go to the company's founders, Michael Budman and Don Green, and their private equity backer Searchlight Capital Partners, which bought majority stake in the firm around two years earlier.

Upon completing the IPO, Searchlight will own about 54 percent of the company, with Budman and Green maintaining a 13.6 percent stake.

Roots, known for its Canadian-made leather goods and rustic casual wear, plans to list on the Toronto Stock Exchange under the ticker symbol "ROOT".

Roots, Canada's major lifestyle brand, was established in 1973. It provides leather goods, athletic wear, accessories and home furnishings. Roots employs more than 1,500 people in Canada.

Currently, the company has 116 stores in Canada, four in the United States and and more than 100 in Asia.

According to its preliminary filings, Roots posted a profit of C$8.2 million on C$281.9 million in sales in fiscal 2016. The company said its 2014 to 2016 compound annual growth rate was about 14 percent.

Earlier, the company reportedly has talked about its expansion plans in the northeast and Midwest regions in the U.S. The company is also said to be working with its partner in Taiwan and China to help establish stores in Singapore and Malaysia.

by RTT Staff Writer

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