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A summer sale sign is seen at Aritzia at the Eaton Centre in Toronto. (Kevin Van Paassen/The Globe and Mail)
A summer sale sign is seen at Aritzia at the Eaton Centre in Toronto. (Kevin Van Paassen/The Globe and Mail)

Aritzia fashion business soars on TSX Add to ...

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 were about 13 per cent above the IPO price of $16 after about 90 minutes of trading Monday.

At Monday’s close, the subordinate shares were up $1.71, or 10.69 per cent, to $17.71 on 8.5-million shares.

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.

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