Sept 15 (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.
The IPO comes at a time when athletic gear, especially
shoes, has been flying off the shelves at most retailers as
COVID-19-led gym closures push people to take up running to keep
The company sold 31.1 million shares in its initial public
offering (IPO) priced at $24, well above its $20 to $22 target
price range, raising $746.4 million. Its stock opened at $35.40.
On was founded in 2010 by running enthusiasts Olivier
Bernhard, David Allemann and Caspar Coppetti, with Federer
investing an undisclosed sum in the company in 2019.
The 20-times Grand Slam winner teamed up with the company
earlier this year to develop the Roger Pro tennis shoe.
On also makes a 100% recyclable brand of running shoes,
called Cyclon, made from castor beans. The shoes are available
only on a subscription basis and have to be returned to the
company for new ones once they wear out.
The company's listing comes at a time when there is growing
global demand and investor interest 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 AB.
Wool footwear maker Allbirds also filed for an IPO last
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
On's existing shareholders also offered a little more than 5
million shares in the IPO, and the company will not get any of
Goldman Sachs & Co, Morgan Stanley and J.P. Morgan are among
the underwriters for the offering.
(Reporting by Noor Zainab Hussain in Bengaluru; Editing by Amy
Caren Daniel and Anil D'Silva)