Roger Federer-Backed Shoe Company Launches On The New York Stock Exchange

Roger Federer-Backed Shoe Company Launches On The New York Stock Exchange

Shares of Roger Federer-backed company On Holding rose 47% on its debut on the New York Stock Exchange on Wednesday, September 15. The company, which is dedicated to the manufacture of shoes, reached a value of 11.350 million dollars.

The initial public offering comes at a time when sales of sports equipment have increased globally, as the pandemic has sparked a trend toward home fitness . However, the merit of the company’s results in its IPO is greater when it comes to the fact that the sector is increasingly concentrated in large firms.

On was born in the Swiss Alps, in Zurich, in 2010. The company was founded by three friends, former professional athlete Olivier Bernhard and his friends David Allemann and Caspar Coppetti. During the first eight years, the company reached seven million customers in 50 different countries. In 2019, Federer invested a sum that has never been made public .

On sold 31.1 million shares in its debut
In its debut on the stock market, On sold 31.1 million shares raising $ 746.4 million . The shares were sold at a price of $ 24, well above the target price, which was between $ 20 and $ 22. The shares opened at $ 35.40. They have since hit a high of $ 40.80 and are currently trading at $ 38.95. Goldman Sachs, Morgan Stanley and JP Morgan are among the underwriters to the offering, according to Reuters .

On the other hand, the high valuation of the company by investors also responds to three other factors. First of all, the participation of the world tennis star generates great appeal. In fact, Federer partnered with the firm to produce Roger Pro tennis shoes, which he featured at some of his sporting events, including Wimbledon.

Second, On has also been dedicated to making sustainable shoe models . An example is the ‘Cyclon’ model, which are 100% recyclable and are made with castor beans. A claim for ‘green’ investors, since the new consumption habits of society require a certain commitment from companies with the environment.

Lastly, the company has joined the trend of the subscription business model , as ‘Cyclon’ sneakers are only available this way and must be returned to the company for new ones once they wear out.

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