Federer-backed shoemaker On valued at over $11 billion in NYSE debut By Reuters
© Reuters. Shoes by ON (Run on Clouds), a shoemaker backed by Swiss tennis player Roger Federer, are pictured in the Swiss Sport Style shop ahead of the Initial Public Offering (IPO), in Lausanne, Switzerland, September 14, 2021. REUTERS/Denis Balibouse
(Reuters) -Shares of Roger Federer-backed On Holding AG jumped more than 47% in their debut on the New York Stock Exchange on Wednesday, valuing the shoemaker at about $11.35 billion.
As COVID-19-led gym closings force people to run to stay fit, the IPO is timely.
In its initial public offering (IPO), the company raised $746.4million by selling 31.1 million shares at $24, exceeding its target price of $20-22. On opened at $35.40.
On was started in 2010 by three running enthusiasts, Olivier Bernhard and David Allemann, while Caspar Coppetti invested an undisclosed amount in Federer’s company in 2019.
Roger Pro, the tennis shoe developed by the 20-time Grand Slam winning player, was teamed up earlier in the year with On.
Cyclon is a brand of 100% recyclable running shoes made out castor beans. These shoes can only be purchased on a subscription and must be returned to the company to get new versions once worn out.
It is a good time to list the company as there’s growing investor demand for sustainable products.
Other sustainability-focused startups that recently went public include Hollywood star Jessica Alba’s Honest Co and Oprah Winfrey-backed Oatly Group (NASDAQ:) AB.
Last month, Allbirds, a wool footwear manufacturer filed for an IPO.
In April, Reuters had reported the shoemaker was targeting a listing in autumn https://www.reuters.com/legal/transactional/federer-backed-shoe-firm-running-targets-autumn-ipo-sources-2021-05-28 that could fetch it a valuation of between $4 billion and $6 billion.
On also received a few million shares from its shareholders, but the company is not eligible for any of the proceeds.
Goldman Sachs & Co (NYSE:), Morgan Stanley (NYSE:) and J.P. Morgan are among the underwriters for the offering.
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