Roots prices shares between $14 and $16 in IPO

Canadian Clothing retailer Roots has announced that it is looking to receive between $14 and $16 per share in its initial public offering.

The retailer that holds over 100 stores across Canada is looking to use the investment round to heighten its marketing investments to induce greater sales, with its overall aim being the expansion of the company.

Roots is hoping to raise a minimum of $200mn, with the company planning to trade on the Toronto Stock Exchange under the symbol ROOT.

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Searchlight Capital Partners will be selling the shares alongside founders Michael Budman and Don Green, with the London based private investment firm having picked up a majority stake in the business back in 2015.

Searchlight is expected to retain a 54% stake in Roots, whilst Budman and Green will retain 13.6% of their respective stakes once the IPO is complete.

This is subject to whether an over-allotment is exercised by the firm, in which case $230mn will be raised, with Searchlight stakes expected to slip to 50.2% and the founders to 12.6% in this instance.

In addition to its Canadian and US stores, the firm has 136 outlets in Asia, operated by its regional partner.