Groupe Dynamite Inc., a Canadian retailer of women’s clothing, has hired banks for an initial public offering that’s likely to be marketed in the coming weeks, according to people familiar with the matter.

The company is working with major Canadian financial institutions and a US bank on the offering, the people said. If successful, it would provide a jolt to the stagnant Canadian IPO market, where just C$700 million ($504 million) has been raised this year, largely for financial vehicles such as exchange-traded funds, data compiled by Bloomberg show.

The IPO may value the company at C$1 billion or more, according to the people, who spoke on condition they not be identified because the matter is still private. The discussions are ongoing and details of the offering may still change.

Groupe Dynamite, based in the Montreal, operates nearly 300 stores in US and Canada. It has locations under the brands Dynamite and Garage as well as online sales, and is owned by Quebec businessman Andrew Lutfy. The stores sell fashion-forward clothing and advertise using bold, youthful imagery. Some consumers criticised Garage’s advertising earlier this year, however, for displaying half-dressed models.

Groupe Dynamite promoted former Abercrombie & Fitch Co. executive Stacie Beaver in April to president and chief operating officer. “The US will continue to serve as a core focus and growth market for the company’s future ambitions,” the company said in a statement announcing the appointment.

A spokesperson for the company declined to comment.

The largest new listing in 2024 in Canada is Mercer Park Opportunities Corp., a special purpose acquisition company that raised C$315 million in June. Bloomberg News reported that Canadian generic drug manufacturer Apotex Inc. is also making plans for a potential initial public offering next year.

Lutfy is chief executive officer of Carbonleo, a real estate developer that recently built the Royalmount, a luxury mall in Montreal.

By Mathieu Dion, Geoffrey Morgan, Christine Dobby and Chunzi Xu

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