Here are five things you need to know this morning:
Groupe Dynamite set to go public: Shares in retailer Groupe Dynamite are set to blow up the TSX’s two-year drought in initial public offerings today, as the company has sold $300 million worth of equity in itself, and the shares are set to list on the benchmark exchange some time today. The Montreal-based retail conglomerate said late Wednesday it had successfully priced a share offering at $21. That’s right in the middle of the $19-$23 range it had previously targeted and values the company at $2.3 billion. Founder Andrew Lutfy will retain ownership of 87 per cent of the equity and 98 per cent of voting control because of the company’s dual-class structure. The company, which operates 300 stores across the U.S. and Canada under the names Garage and its eponymous banner had $888 million worth of revenue in the year up to August, filings show, booking a profit of $128 million. The shares are expected to begin trading in Toronto under the ticker GRGD on an “if, as and when-needed basis” some time today, filings say. The IPO is the first major issuance of new shares on the TSX in more than two years.
Nvidia shares moving sideways: Somehow, US$35 billion in quarterly sales can be underwhelming. That seems to be the investor takeaway from Nvidia earnings after the bell yesterday, when the semiconductor giant revealed a sales forecast for next quarter that came in only slightly ahead of analyst estimates – instead of blowing past them as is their custom. The company’ shares have been a rocket for about two years now, as demand for their AI-capable chips is through the roof. Revenue for the quarter came in at $35.1 billion, up 94 per cent. But the company’s fortunes are now pinned to its next generation Blackwell chips, which the company says will finally start shipping this quarter. The demand is there but they are proving to be more expensive and complicated to produce in the quantities needed, and that will weigh on profits. The sales forecast for next quarter is $37.5 billion. That’s still growth, but when investors are used to numbers that double every quarter instead of expanding by a few percentage points, that’s undeniably a slowdown. The shares sold off after markets closed yesterday but have pared most of those losses this morning and are up about one per cent premarket.
KingSett freezes $4.9B property fund: Real estate manager KingSett Capital Inc. suspended payments to investors in one of its biggest property funds, saying it needs to hoard cash to get through an ongoing slump in commercial real estate. The Toronto-based firm says holders of the $4.9 billion KingSett Canadian Real Estate Income fund won’t get any income distributions for the next year, nor will they be allowed to redeem their units. The company owns a variety of high-end office buildings in Canada, including Scotia Plaza in Toronto and Arthur Erickson Place in Vancouver. In a statement, the company says its buildings are fully rented and tenants are paying on time, but it has been hard to sell properties to raise money in the current interest rate environment and economy. The company pledges to restart distributions in December of 2025.
Liberals set to unveil affordability measures: The governing Liberals are set to announce some affordability measures targeting lower-income consumers headed into the holidays. CTV News has confirmed reports that Prime Minister Justin Trudeau and Finance Minister Crystia Freeland will announce a two-month reprieve of GST charges on a number of household essentials such as children’s clothes, diapers, toys, car seats, shoes and pre-prepared hot meals. The NDP have suggested they will support the measures even though they fall short of the GST holiday on recurring bills that the party had been pushing for. Trudeau will announce details at 11 a.m. this morning.
Gildan sells $700M of loonie debt for first time: Montreal-based apparel company Gildan has sold $700 million worth of Canadian-dollar-denominated debt – its first such offering ever. The company is just the latest corporate issuer to come to market with loonie-denominated debt, trying to take advantage of robust demand even as returns aren’t much better than what’s available in the government debt market.