The IPO of Swiss running shoe maker On Holding in New York City has attracted great interest from investors. The Zurich-based company placed 31.1 million Class A shares on Wednesday night at a price of $ 24 each. Originally, only an issue price of 18 to 20 dollars was targeted, so the IPO went better than expected.
The jump on the New York Stock Exchange grossed $ 746.4 million at the sports equipment manufacturer’s box office. In total, the transaction results in an enterprise value of over six billion dollars.
The company, in which Swiss tennis player Roger Federer also has a stake, is benefiting from a general trend: manufacturers of running shoes have experienced a boom in demand during the coronavirus pandemic. Many people turned to running when gyms closed and team sports activities were banned. The Swiss, who were until now a niche supplier and are still a fairly small manufacturer compared to Adidas or Nike, are also benefiting.
We were founded in 2010 by former top triathlete Olivier Bernhard and running enthusiasts David Allemann and Caspar Coppetti. Thanks to the cushioning technology they have developed, you should run particularly comfortably in the On running shoes with the distinctive sole. 20-time Grand Slam winner Federer enlisted in 2019 and worked on the development of a tennis shoe. We were the supplier of the Swiss Olympic team this year.
Turnover of On, which also sells sportswear and accessories, jumped 59% to 425.3 million Swiss francs last year, adjusted operating profit (Ebitda) increased by 67% to 49.8 million Swiss francs. During the first six months of this year, the brand achieved a turnover of 315.5 million francs and an EBITDA of 47.3 million francs. Goldman Sachs, Morgan Stanley and JP Morgan were in charge of On’s IPO. UBS, Credit Suisse and other banks were also there.
Along with sports data provider Sportradar, another Swiss company went public in the United States on Tuesday. The start on the Nasdaq tech exchange was bumpy: the stock price at close of trading was $ 25.05, below the issue price of $ 27. The St. Gallen-based company raised $ 513 million from investors by placing 19 million Class A shares. Sportradar, which provides data on sporting events to betting providers and media companies, among others, wishes to invest the money in further growth and acquisitions.