Canadian women’s clothing retailer Groupe Dynamite Inc. launched its initial public offering with a dual-class share structure and a valuation of C$2.3 billion ($1.7 billion), a deal that would cement its top executive as a billionaire. 

The company behind the Garage and Dynamite chains said in public filings that Andrew Lutfy, its owner and chief executive officer, expects to offer subordinate voting shares in the range of C$19 to C$23 per share, which would raise about C$300 million based on the midpoint.

Lutfy would retain about 87% of the company and 98.5% of the voting rights, assuming the underwriters don’t exercise an option to sell more shares. If the IPO goes at C$21, the company’s market capitalization would be C$2.3 billion, making Lutfy’s stake worth C$2 billion. 

The company will list on the Toronto Stock Exchange and trade under the symbol GRGD. The offering is being led by Goldman Sachs Canada Inc., BMO Nesbitt Burns Inc., RBC Dominion Securities Inc. and TD Securities Inc., with other institutions including Scotia Capital Inc. and Desjardins Securities Inc. as part of the underwriting group. 

Groupe Dynamite, which has about 6,000 employees, operates nearly 300 stores in US and Canada selling fashion-forward clothing that’s marketed using bold, youthful imagery.

The company had revenue of C$888 million and net income of C$128 million during the 12-month period ending Aug. 3, and reported a total debt of C$469 million, according to the IPO filings. 

Lutfy managed to quickly boost Groupe Dynamite’s revenue after restructuring its real estate leases while the company was under creditor protection during the Covid pandemic.

The 60-year-old Montreal businessman, who started as a part-time Garage stockroom clerk at the age of 18, is also the CEO of Carbonleo, a real estate developer that recently built the Royalmount, a massive luxury mall in Montreal. The project was halted for many months during the pandemic and cost about C$1.5 billion, according to Montreal news outlet La Presse.

He’s also the grandson of Joseph Chamandy, the founder of the clothing manufacturer known today as Gildan Activewear Inc.