Vancouver-based Aritzia Inc. designs apparel and accessories, which it sells in retail locations and online, including 61 stores in Canada and 20 in the United States. The share capital note from the company’s financial statements for the year ended February 26, 2017, is presented in Exhibit 11.15A. Exhibit 11.15B includes an extract from Aritzia’s 2017 annual information form that outlines the multiple-voting share structure.

Required 

a. Describe the changes that the company made to its capital structure when it went public. 

b. How much money did Aritzia raise through its IPO? On a percentage basis, how much were the total fees and expenses incurred as part of the IPO relative to the funds raised though the IPO? 

c. States that prior to the IPO, the company consolidated its outstanding shares. Explain what this means and what effect this step would have on share value. 

d. At the close of the market on June 30, 2021, Aritzia’s common shares were trading at $37.08 per share. If you had purchased 100 shares during the company’s IPO, calculate the amount by which your investment would have appreciated. Note that Aritzia has not paid any dividends since its IPO.

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12 Share capital Prior to the IPO, the Company's authorized share capital consisted of an unlimited number of Class A, Class B, Class C, Class D common shares and preferred shares. There were 110,987,688 Class A common shares and 62,781,263 Class C common shares issued and outstanding. Immediately prior to the closing of the IPO, all of the outstanding Class A and Class C common shares were exchanged for either one multiple voting share or one subordinate voting share. The Company's Class B and Class D common shares and preferred shares were removed from the Company's authorized share capital. The Company's authorized share capital consists of (i) an unlimited number of subordinate voting shares, (ii) an unlimited number of multiple voting shares and (iii) an unlimited number of preferred shares, issuable in series. Each subordinate voting share is entitled to one vote and each multiple voting share is entitled to 10 votes on all matters upon which holders are entitled to vote. Following the foregoing share exchanges, all of the Company's issued and outstanding multiple voting shares and subordinate voting shares were consolidated on a one-to-0.5931691091 basis. Concurrent with the IPO and Secondary Offering, the selling shareholders exchanged a certain number of their multiple voting shares for subordinate voting shares. As at February 26, 2017, there were 55,756,002 multiple voting shares and 53,016,459 subordinate voting shares issued and outstanding. There were no preferred shares issued and outstanding as at February 26, 2017.