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Highlights
- California-based footwear enterprise Allbirds was started to fight climate change.
- Allbirds has launched a new segment of activewear ahead of the potential IPO.
- In June 2021, it was reported that Allbirds had confidentially filed for the initial public offering in the US.
California-based sustainable footwear brand Allbirds has launched an activewear collection ahead of its rumoured public debut. The shoe brand's latest launch is being dubbed as a move to compete with existing activewear brands in the US.
Earlier in June this year, it was reported that Allbirds was in talks with Morgan Stanley to become an underwriter after it confidentially submitted documents for a public debut in the US. Other big players like JPMorgan and Bank of America could also take up the underwriting role for this initial public offering.
Since its launch in 2016, Allbirds has reportedly raised a little over US$ 200 million. The footwear brand could be valued at around US$ 2 billion at the time of its IPO.
Allbirds' IPO and company information
Allbirds was started to fight climate change and has been focused on reducing carbon emissions since the start. The footwear brand remains environment friendly and avoids using polyester, a material used in about 55 per cent of all clothing and spews.
Polyester is believed to be harmful to the environment as it adds 700 million tons of carbon every year into the atmosphere, according to a 2020 report by the Circular Fibres Initiative.
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To avoid using polyester, Allbirds uses merino wool and eucalyptus tree fibre to make its iconic slip-on sneakers and now running clothes.
The company stepped into the apparel segment in 2019 when it launched a collection of socks. Last year, the footwear brand launched four clothing items, which include a shirt that was made from discarded crab shells.
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With the latest addition of the activewear segment, Allbirds can attract socially responsible customers and compete with rivals like Nike and Under Armour. Allbirds has worked on the activewear collection for about two years.
Although there's no official announcement from the company if the US Securities and Exchange Commission (SEC) approves the documents, the public debut might happen in September.
Investors interested in this sustainable brand could get in touch with a stockbroker or set up an online trading account to get hold of its pre-IPO shares.
Bottomline
A 2020 report by the Business Research Company notes that there has been an increasing awareness for sustainable clothes to decrease pollution.
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The report estimates that the sustainable fashion industry is expected to grow from US$ 6.35 billion in 2019 to US$ 8.25 billion by 2023.
Between this period, the industry is expected to register a compound annual growth rate (CAGR) of 6.8 per cent.
