The IPO of the Swiss Running shoe manufacturer On (NET000ONRUN1) in New York has met with great interest from investors. The company placed 31.1 million Class A shares on Wednesday night at $ 24, which is more expensive than planned: Originally, an issue price of $ 18 to $ 20 was targeted. The jump on the New York Stock Exchange brought the sports equipment manufacturer $ 746.4 million into the box office.
100 runners ran along the Hudson River together with the founders of On to ring the opening bell at the New York Stock Exchange.
Corona-Boom
Running shoe manufacturers experienced a boom in demand during the coronavirus pandemic. Many people turned to running when gyms closed and team sports activities were banned. On was founded in 2010 by former top triathlete Olivier Bernhard and running enthusiasts David Allemann and Caspar Coppetti. Thanks to the cushioning technology they have developed, one should “walk on clouds” in the On running shoes with the distinctive sole.
The 20-time Grand Slam winner Federer got on board in 2019 and worked on the development of a tennis shoe. On was the supplier of the Swiss Olympic team in Tokyo in 2021.
On’s management team around Marc Auer, Olivier Bernhard, Martin Hoffmann, Caspar Coppetti and David Allemann.
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© On Running
Fast growing company
On combines strong growth with impressive gross margins. The company has grown very rapidly over the past decade, with average annual net sales growth of 85 percent. At the same time, On was able to continuously increase the gross margin and achieved a high value in the industry of 59 percent in the first half of 2021.
On customers worldwide appreciate the patented technology, the design and the positive charisma of the premium sports brand. On’s half-yearly net sales in 2021 rose to 315 million Swiss francs, an increase of 85 percent compared to the half-year results for 2020. North America is the largest market for On with 49 percent. The brand’s global presence also includes Europe, Asia, Australia and Latin America.
In sales, the company relies on a multi-channel strategy, with the direct-to-consumer business (DTC) already accounting for 37 percent of net sales in the first half of 2021, a rate well above the industry average.
Goldman Sachs, Morgan Stanley and JP Morgan were in charge of the On IPO. UBS, Credit Suisse and other banks were also on board.
Also sports radar on the stock exchange
With the Sports data provider Sportradar (CH1134239669) Another Swiss company went public in the US on Tuesday. The debut on the Nasdaq technology exchange was bumpy, however: The share price at close of trading was $ 25.05, below the issue price of $ 27. The Swiss company raised $ 513 million from investors with the placement of 19 million Class A shares. Sportradar, which supplies data on sporting events to betting providers and media companies, among others, wants to put the money into further growth and acquisitions.
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