On Holding AG IPO: All you need to know

Highlights

  • Swiss shoemaker On Holding AG has filed for IPO with SEC on Tuesday.
  • It has applied for the ticker symbol ‘ONON’ with the New York Stock Exchange (NYSE).
  • On’s expected price range is between US$18.00 to US$20.00 apiece for the IPO, targets to raise US$622 million from the IPO.

Switzerland-based shoe company On Holding AG has filed for an initial public offering (IPO) with the Securities and Exchange Commission (SEC) on Tuesday.

On Holding was founded in July 2010 in Zürich by three-time world triathlon champion Olivier Bernhard along with his friends Caspar Coppetti and David Allemann. The Swiss company expects a valuation of more than US$6 billion after the IPO, Reuters reported.

Grand Slam winner Roger Federer also has invested in the company. On has roped in the tennis star to launch a Roger Pro tennis shoe this year.

Besides making a range of enviable shoes, On’s other specialty includes a 100% recyclable running shoe named Cyclon made of Castor Beans. These shoes are available only on a subscription basis. The buyer must return the shoes to the company to get a new pair.

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Source - pixabay

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ON’s IPO strategy

On plans to raise US$622 million in the IPO. On’s shareholders will offer 5.66 million shares, while the company will offer 25.44 million Class A Ordinary shares in the IPO. The shareholders and the company will collect the proceeds from their respective offerings.

The company will offer an additional 3,815,734 shares, while shareholders will offer an extra 849,266 Class A ordinary shares that are optional for underwriters to execute within 30 days to cover any over-allotments.

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The price range for the shares is between US$18.00 to US$20.00 apiece.


Its underwriters are Goldman Sachs & Co, J.P. Morgan, Morgan Stanley, Allen & Co. LLC, Credit Suisse Group AG, and UBS Group AG, among others. Its existing investors include Alexandre José da Costa Pérez, of Point Break Capital Management LLC, Kenneth A. Fox, the founder of Stripes, LLC, and Amy Banse, senior adviser to the executive committee of Comcast Corporation.          

The company has earned net sales of Swiss franc CHF315.45 million for the six months ended June 30, 2021, and its net income was CHF3.76 million for the same period. The revenue was CHF170.9 million and net loss was US$33.1 million for the six months ended June 30, 2020.

North America is its biggest market followed by Europe in terms of sales.

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Bottomline

The Roger Federer-backed company saw significant growth in the past six months, mainly due to demand for running shoes from health-conscious individuals during the lockdown. Analysts expect a successful US IPO for the company, which has been drawing investors’ attention.

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