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Searchlight’s Roots raises $200 mln from IPO: Reuters

Canadian apparel company Roots Corp raised $200 million (US$159.71 million) in its initial public offering, according to a source with direct knowledge of the matter.

The company priced its shares at $12 on the Toronto Stock Exchange, according to the source, down from a previous range of $14 to $16.

Roots, known for its trademark beaver logo, is set to make its debut seven months after Canada Goose Holdings Inc had its high-flying IPO.

However, investment strategists warned that investors may be in for a disappointment, given Roots’ more modest growth and broader retail challenges.

Update: Roots is a portfolio company of U.S. private equity firm Searchlight Capital Partners. Searchlight, which is selling shares as part of the IPO, acquired a controlling stake in the company in 2015.

(Reporting by John Tilak in Toronto and Uday Sampath in Bengaluru)

(This story has been edited by Kirk Falconer, editor of PE Hub Canada)

Photo courtesy of Roots Canada