Canadian online furniture company Article eyeing U.S. IPO in new year: sources

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Article would be the latest in a string of well-known North American online merchants to go public recently, including Allbirds Inc. and Warby Parker Inc.

Home furniture retailer Article, one of Canada’s most successful e-commerce merchants, is preparing to go public in the new year in what would be a rare U.S.-only listing by a domestic technology company.

Article still has not completed an informal pre-IPO process of meeting prospective investors known as “testing the waters” and is also looking to expand its board, now composed of three of its co-founders, before formally kicking off the IPO process. The Globe and Mail is withholding the identities of the sources as they are not authorized to speak on Article’s plans.

Vancouver’s Klue raises US$62-million as private capital giant Tiger bites further into Canadian tech They set out to build a vertically integrated business where they would design products, source materials and work with Asian manufacturers to assemble products and then distribute them from their own warehouses . With no showrooms or salespeople and end-to-end control over their business, they could keep costs tight and sell at lower prices than physical rivals, limiting their catalogue to a select set of products.

Unlike many digital upstarts, Article was determined to grow by raising little outside money and reaching profitability as soon as possible. By 2015, Article was profitable before interest, taxes, depreciation and amortization, and has stayed that way; it has raised less than US$10-million in outside equity capital to drive its growth.

 

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