Lululemon Athletica plans to double its storefront presence in North America over the next two years funded by a US$230 million initial public offering.
In a prospectus filed with American and Canadian regulatory agencies, the Vancouver-based company expects to receive net proceeds of roughly US$20.3 million from the IPO, which will be used to pay for expansion costs estimated at between US$28 million and US$34 million over the next two years.
The 52-store chain plans to open 20 to 25 new outlets in 2007 and 30 to 35 in 2008 across Canada and the United States.
Lululemon has more than tripled its revenue to $148.9 million in 2006 from $40.7 million in 2004. Its net income rose to $7.7 million in 2006 from a net loss of $1.4 million in 2004.
In addition to opening new stores, the company plans to expand its product lines from yoga wear to handbags, undergarments, outerwear and sandals.
Lululemon was founded in 1998 by Chip Wilson. Part of the company was sold in December 2005 to private equity firms Advent International, which bought 38.1%, and Highland Capital Partners, which owns 9.6%.