On Running IPO: Shares Value Shoemaker at $11.35B
The Roger Federer-backed company On Running has shares jumping to nearly 46%.
Swiss shoe and sports apparel company On Running, also referred to as On Holding (NYHSE: $ONON), soared upon its IPO on Wall Street this week. The company is backed by famed Swiss tennis player Roger Federer, who reportedly invested $54 million into On Running nearly two years ago.
Federer holds the number 9 ranking in the world by the Association of Tennis Professionals and last year had an On Running shoe named after him.
The Swiss sportswear company has focused on sustainability, boasting 100% recycled (and vegan) running shoes called Cyclon. The company’s philosophy is that performance and sustainability are complementary concepts. They use reduced footprint packaging and will be offering a zero-waste subscription service where a consumer can ship back a pair of used sneakers to be transformed into a new shoe.
First launched in Zurich, the Swiss company is the brainchild of Caspar Coppetti, Olivier Bernhard, and David Allemann, three friends who sought out to create the most comfortable running shoe.
After teaming up with an engineer who was also interested in forming a comfortable running experience, the three friends conceptualized a cushioned prototype that would be supportive, firm, and enhance the running experience.
Called CloudTec, the patented technology has multi-directional cushioning that some testers describe as “running on clouds.” The prototype went on to win the ISPO BrandNew Award, a coveted recognition for startups.
On Running sells wholesale, direct to consumer, and via limited retail stores.
The pandemic has increased interest and led to a boosted market for athleisure, better positioning On Running’s track for success. This year, the retail IPO market has seen a surge in IPO filings, with this fall to set a record. Companies, especially footwear, have noted the desires consumers have had to stay physically fit during Covid.
In a recent Online Apparel and Footwear Market 2021 Research Report, 2020 is considered a base year. The report predicts that the next five years will record a significant spike in growth.
