Federer-backed shoemaker jumps 48% in New York debut

(Bloomberg) — Swiss running shoemaker On Holding AG, whose patented cushioning technology has attracted tennis legend Roger Federer as an investor, climbed 48% on its first day of trading in New York.

The shares rose to $35.40 on Wednesday, after selling for $24 each in the initial public offering. The Zurich-based company raised $746 million after it marketed its shares for $20 to $22.

On has become one of the world’s fastest growing running shoe brands since its inception ten years ago. The brand got a boost from the pandemic thanks to a lockdown-inspired boom in running, outdoor and casual wear. Known for their signature tubular cushions on the sole, the shoes have gained a cult following. Federer became a shareholder in 2019 and the company has unveiled a shoe he helped design that sells for about $200.

“The IPO gives us a new starting line, the opportunity to continue growing around the world,” said co-founder David Allemann in an interview. About plans to open its next store in Tokyo in 2022 and is looking at additional stores in the US and China.

Allemann was joined by some 100 runners jogging along the Hudson River to the New York Stock Exchange ahead of the opening bell.

On’s net income was 3.8 million francs ($4.1 million) in the six months to June, compared to a loss of 33.1 million francs a year earlier. Adjusted Ebitda for the first half of the year was 47.3 million francs.

“The brand is home to Switzerland, but as a global brand we wanted it to be part of the most global equity market and appeal to a global investor community,” said Chief Financial Officer Martin Hoffmann.

Goldman Sachs Group Inc., Morgan Stanley, JPMorgan Chase & Co., Allen & Co. LLC, UBS Group AG and Credit Suisse Group AG led the sale.

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