Bain-Backed Dollarama Files for IPO

(Reuters) – Canadian retailer Dollarama Inc filed a preliminary prospectus with the country’s securities regulatory authorities for an initial public offering.

Dollarama, which operates 585 stores, said late on Thursday the offering is being made through a syndicate of underwriters led by RBC Dominion Securities Inc, CIBC World Markets Inc and Credit Suisse Securities (Canada) Inc.

The submission of the prospectus comes on the heels of a spike in IPO filings by retailers, including that of U.S. discount chain Dollar General Corp.

Toronto’s Globe and Mail, citing investment banking sources, said Montreal-based Dollarama is seeking to raise more than C$250 million ($231.9 million) from the IPO.

Dollarama is 80 per cent controlled by Boston-based Bain Capital, which purchased its stake in 2004 for C$1 billion, according to the paper. (Reporting by Ajay Kamalakaran in Bangalore; Editing by David Holmes) ($1=1.078 Canadian Dollar)