Allbirds IPO (BIRD): Stock jumps 90% in Nasdaq debut

Highlights

• Allbirds, Inc. (NASDAQ:BIRD) on Wednesday priced its Class A Common Stock at US$15.00 per share, above the expected range.
• The stock gained more than 90% at the close of the first day of trading.
• The footwear and apparel company makes products made from naturally derived materials.

Allbirds, Inc. (NASDAQ:BIRD) stock closed the first-day trading on NASDAQ Wednesday with over 90% gain. The price had more than doubled in intraday trading, rising as much as US$31. 

IPO price

Allbirds Inc priced its Class A Common Stock at US$15.00 per share, more than its initial expected range of US$12.00 to US$14.00 apiece.

In addition, the company had initially offered 19 million shares but increased the lot size to 20 million, raising US$303 million from the IPO. The company is now valued at US$2.16 billion, with 143 shares outstanding, its SEC filing showed.

Allbirds IPO (BIRD): Stock jumps 90% in Nasdaq debut

Meanwhile, the underwriters can exercise their 30-day purchase option for additional 3,028,845 shares of Class A common stock at the IPO price after deducting underwriting discounts and commissions. The offering is expected to close on Nov 5, 2021.

Morgan Stanley, BofA Securities, and J.P. Morgan were its book-running managers. 

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The company’s current market capitalization is US$3.9 billion.

The San Francisco-based company is a lifestyle brand. It makes footwear and apparel from natural materials like eucalyptus, fiber, castor oil, wool, and crab shells. It was founded in 2015.

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Source – Pixabay

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Allbirds Investors and financials

Its investors include Tiger Global, T. Rowe Price, Lerer Hippeau Ventures, Fidelity, and affiliates of Maveron. The company had 546 employees as of June 30, 2021.

It earned net revenue of US$118 million in the six months ended June 30, 2021, up 27% compared to net revenue of US$93 million in the corresponding period of 2020. Its net loss was US$21 million in the period against US$9.5 million in the comparable period a year ago.

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Allbirds uses superfine merino fiber developed from the eucalyptus tree for its fabric. It also develops foam from sugarcane. The company has a presence in 35 countries.

It sells its products through the brick-and-mortar stores and eCommerce portals.

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Bottomline

The company’s main rival is ON Holdings AG, which makes unique footwear from natural fiber. ON Holding is backed by tennis star Roger Federer. ON Holding launched its IPO in September. However, investors must weigh all the pros and before deciding to invest in stocks.