Dollarama Inc. has filed a preliminary prospectus with securities regulators for an initial public offering.
The discount retailer said the offering is being made through a syndicate of underwriters led by RBC Dominion Securities, CIBC World Markets and Credit Suisse Securities (Canada).
Dollarama has 585 locations across the country.
Earlier Thursday, Dollarama Group reported a second-quarter profit of 25.7 million, down from $26 million for the same period a year earlier.
Sales for the quarter ended Aug. 2 jumped nearly 15% to $303.4 million from $264.3 million as consumers sought to spend on cheaper goods because of the recession.
The retailer said it ended the second quarter with $103.4 million in cash, nearly double the $54.8 million for the same period last year, largely because of increased profits and working capital management.
“We are pleased to announce another strong quarter of financial performance, including an increase in comparable store sales and adjusted EBITDA, despite some continued sluggishness in consumer spending in Canada,” said Larry Rossy, Dollarama’s chief executive.
“During the second quarter, we continued to roll out our multi-price product assortment, which is being well received by customers. We believe the positive response is evident in the increase in average transaction size and traffic we experienced in most of our stores.”
