Aiming at boosting its operations in the country, the Dutch fast-fashion chain C&A listed the shares of its Brazilian subsidiary in the country’s stock market (B3) yesterday, in the first IPO ever made by the fashion retailer.
With a share price set at R$ 16.50 ($4,12) for the initial public offering, C&A shares climbed up to R$17,35 ($4,34) and closed the day at R$17,01 ($4,25). Led by the investment bank Morgan Stanley, the Dutch fashion retailer sold 98.6 million common stocks, raising as much as R$ 1.62 billion (around $406 million).
“This IPO gives C&A Brazil the opportunity to act with greater independence and to access new sources of funding to further fuel growth in omnichannel and accelerate new store openings. It’s about taking the business to the next level and setting it up for success as the business enters a new retail era,” said Allan Leighton, Chairman of the Board of C&A AG in the official press release.
The second major fashion retailer in Brazil, after Renner, reached a market valuation of R$ 17.6 billion (almost $4.5 billion) at the closing of the trading session. C&A has nearly 1,900 stores in 21 countries worldwide, including several European countries. Brazil is the second main market for the company, where it holds 282 points of sale. As for Latin America, besides Brazil, the retail company has operations in Colombia and Mexico.