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(Bloomberg) -- Canada Goose Holdings Inc.’s shares jumped almost 40 percent in initial trading Thursday after the high-end coat maker went public with the richest valuation of its global luxury peers.

Shares in the Toronto-based retailer, known for its $900 parkas worn by celebrities from Toronto rapper Drake to Blue Jays slugger Jose Bautista, were trading at C$23.70 a piece in its hometown Thursday as of 10:44 a.m. That gives Canada Goose a market value of C$2.5 billion ($1.88 billion) above its IPO valuation of a C$1.82 billion.

Canada Goose raised C$340 million in its initial public offering, pricing the shares at C$17 a piece, above the marketed range of C$14 to C$16 a share, according to a statement Wednesday. The shares started trading Thursday on the Toronto Stock Exchange and New York Stock Exchange under the symbol GOOS.

The IPO valuation already gave Canada Goose a price-to-earnings multiple of 45.5 times, using conservative growth estimates, making it the highest among luxury goods companies, Bloomberg Intelligence analyst Maja Rakic wrote in a note Thursday. That number puts it ahead of Hermes International’s 37.2 times and Brunello Cucinelli SpA’s 33.5 times, she wrote.

“Plans to expand its direct-to-consumer channel should support superior growth," Rakic said. "Canada Goose operations likely support near-term expansion plans aimed at Germany and Scandinavia. The company needs to make further investments soon, which could weigh on profit. Keeping tight cost controls while driving sales will be key."

Canada Goose is backed by Bain Capital, which will continue to own a controlling interest in the company following the IPO, according to the prospectus.

Canada Goose was founded in a small warehouse in Toronto in 1957 as Metro Sportswear Ltd., specializing in woolen vests, raincoats and snowmobile suits. In recent years it has shifted its focus to luxury consumers, targeting shoppers who drive Land Rovers rather than dogsleds.The company plans to expand into markets including knitwear, footwear, hats and gloves as well as travel gear and bedding in the coming years, the IPO prospectus shows.

In 2013, when Bain acquired a 70 percent stake in Canada Goose, the company was valued at about $250 million, people familiar with the matter have said. Terms weren’t disclosed at the time.

Canadian Imperial Bank of Commerce, Credit Suisse Group AG, Goldman Sachs Group Inc. and RBC Capital Markets managed the offering.

To contact the reporter on this story: Scott Deveau in Toronto at sdeveau2@bloomberg.net.

To contact the editors responsible for this story: Elizabeth Fournier at efournier5@bloomberg.net, Jacqueline Thorpe

©2017 Bloomberg L.P.

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