On Holding AG, the Swiss shoemaker supported by tennis icon Roger Federer, is aiming for a valuation exceeding $6 billion with its upcoming initial public offering (IPO) in the United States. The timing couldn’t be better for On Holding’s IPO, as there has been a surge in demand for athletic products, particularly shoes, due to the popular athleisure trend and the closure of gyms amid the Covid-19 pandemic. As people look for ways to stay active and fit, running has become a preferred choice, leading to increased interest in running shoes.
Established in 2010 by running enthusiasts Olivier Bernhard, David Allemann, and Caspar Coppetti, On Holding captured the attention and support of Roger Federer, who made an undisclosed investment in the company in 2019. Earlier this year, the renowned 20-times Grand Slam winner collaborated with On Holding to develop the Roger Pro tennis shoe. Additionally, On Holding offers a unique line of running shoes called Cyclon, known for their 100% recyclable and castor bean-based construction. These innovative shoes are exclusively available through a subscription model, requiring customers to return them once worn out in exchange for new ones.
North America serves as On Holding’s largest market, accounting for nearly 49% of its total sales, closely followed by Europe. The shoemaker has set a target to raise $622 million in its IPO. According to Reuters, On Holding was reportedly aiming for a listing in the autumn with a valuation range of $4 billion to $6 billion. As part of the IPO, existing shareholders of the company plan to offer approximately 5.66 million shares, with On Holding not receiving any proceeds from the sale of these shares. The company intends to list on the New York Stock Exchange using the symbol ONON.
On Holding’s focus on innovation and sustainability, evident in its collaboration with Roger Federer and the production of recyclable shoes, has strongly resonated with consumers. Combined with the growing demand for athletic products, this positions the company for success in the market. Investors are eagerly watching On Holding’s IPO, which is expected to draw significant attention and further solidify the company’s position in the global sports footwear industry.
For additional reading, you may find the following links useful:
1. On Holding Official Website
2. Reuters: Tennis Star Roger Federer Invests in Swiss Sneaker Brand On Holding
