Sleep Country Canada Holdings Inc., the nation\’s largest mattress retailer, fell in its trading debut after raising $300 million (US$232 million) within an initial public offering.
Sleep Country slid 3.3 per cent to $16.44 at 1:20 p.m. in Toronto, down from the $17 IPO price. The shares traded as low as$16.24.
\”It\’s a lesson to be learned,\” said David Cockfield, a fund manager at Northland Wealth Management in Toronto, whose firm oversees about $325 million and opted not to participate in the IPO. \”Often this is one way it goes: IPOs are hot, hot, hot and everybody thinks it\’s easy money, then along comes one which doesn\’t act that way and you get bit.\”
Sleep Country is anticpated to be Canada\’s third company to fall on the first day\’s trading this month. Mining company TMAC Resources Inc., which raised $135 million, slid 5.8 percent on its July 7 debut. Crown Capital Partners Inc., which raised $65 million, plunged 8.2 per cent on its July 9 start.