Paige Ellis

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Fashion retailer Aritzia has increased the size of its initial public offering thanks to “exceptionally strong institutional demand,” according to sources familiar with the matter.

Founder Brian Hill and a private equity backer will now sell a combined 25 million shares, up from the original 20 million. Sources told BNN the $14-to-$16 per share marketing range will remain the same. Aritzia will not receive any of the proceeds from the initial public offering.

The company has been marketing the upcoming sale to investors and, despite Canada’s challenging retail landscape and dry IPO market, it appears Aritzia’s road show has been greeted with enthusiasm.

The company sells a “strategic mix” of exclusive brands like Babaton, Talula and TNA. The clothing, aimed at female millennials, is known for being trendy, and is priced somewhere between fast-fashion wares and luxury brands. The strategy appears to be working: Aritzia’s profit nearly doubled to reach $32 million last year. The company has also posted same-store sales growth in 17 of the past 20 years, according to its prospectus.

This success stands out in Canada’s fashion market. Over the past few years, several mid-market clothiers have folded, from Danier Leather to Mexx and Jacob.

Aritzia is on course to hit the TSX during an IPO dry spell. There were just two new issues in Canada in the first half of 2016, according to a report by PwC.

Aritzia is expected to price its shares next week