Aug 24, 2021
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Federer-backed On Holding plans US listing

Aug 24, 2021

Listing on major stock markets is something of a trend for the clothing and accessories sector at the moment and the latest company set to launch an initial public offering is the Swiss shoemaker backed by tennis superstar Roger Federer.

On Holding

On Holding, the company that sells trainers as well as clothing, will list on the New York Stock Exchange and filed for an IPO there on Monday. 

The company’s filing information also came with news that it's profitable, albeit at a relatively low level at the moment. It recorded net income of CHF3.8 million (£3.03million) in the period to June 30, having made a loss of CHF33.1 million a year earlier. That came as its net sales rose 85% in the first half to CHF315.5 million.

The business was founded in 2010 by Olivier Bernhard, David Allemann and Caspar Coppetti and it now sells its products in 50 different markets. Roger Federer became part of the mix just two years ago, at which point it received a huge publicity boost. That was also helped by the development of a footwear collection headed by the Roger Pro, with more shoes added later.

US venture capital firm Stripes also has a 12% stake but it’s not known how big Federer’s stake is.

The presence of a big name is always helpful when it comes to marketing sports products, as the giants of the sports sector have demonstrated for many years via their links with superstar athletes. But On’s Federer deal goes deeper and, like the UK’s Castore that’s backed by another tennis star Andy Murray, it’s something that’s important for the firm.

IPOs aren't just about the hard facts of how a company is performing, as the interest investors are likely to show is also tied up in what kind of a future impact the company can make. And a celebrity name attached – especially one with such heavyweight status – is hugely important. 

At its last funding round, the company was valued at nearly $2 billion, according to Reuters, and there has been speculation that the IPO could see a value of between $4 billion and $6 billion.

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