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(Bloomberg) – Swiss running shoe maker On Holding AG, whose proprietary cushioning technology attracted tennis legend Roger Federer as an investor, climbed 46% on its first day of trading at New York.
The shares closed at $ 35 on Wednesday, after being sold for $ 24 each in the initial public offering. The Zurich-based company raised $ 746 million after trading the shares for between $ 20 and $ 22.
We have become one of the fastest growing running shoe brands in the world since its inception ten years ago. The brand was boosted by the pandemic thanks to a lockdown inspired boom in running, outdoor and casual wear. The shoes, known for their distinctive tubular cushions on the sole, have garnered some cult following. Federer became a shareholder in 2019 and the company unveiled a shoe he helped design that sells for around $ 200.
“The IPO gives us another starting line, the opportunity to further develop ourselves in the world,” said co-founder David Allemann in an interview. It plans to open its next store in Tokyo in 2022 and is considering other stores in the United States and China.
Allemann was joined by a hundred runners to run along the Hudson River to the New York Stock Exchange before the opening bell.
On’s net profit amounted to 3.8 million francs ($ 4.1 million) in the six months to June, compared to a loss of 33.1 million francs a year earlier. Adjusted EBITDA for the first half of the year amounted to CHF 47.3 million.
“The brand’s home is Switzerland, but as a global brand we wanted it to be part of the most global stock market and to appeal to a global investor community,” said CFO Martin Hoffmann .
Goldman Sachs Group Inc., Morgan Stanley, JPMorgan Chase & Co., Allen & Co. LLC, UBS Group AG and Credit Suisse Group AG handled the sale.
(Updated the title, first and second sentences to reflect the closing price.)
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