Roger Federer-backed sports apparel store On, jumps 47% in market debut

Shares of athletic apparel store, On Holdings, backed by Roger Federer, jumped 47% on its market debut, on Wednesday.

The company sold 31.1 million shares raising $746 million in the IPO that was priced at $24, well above its original $18-20 target. The $35 closing price has valued On, at $11.2 billion.

The Swiss tennis player invested an undisclosed amount in the company in 2019 that was founded in 2010 by running enthusiasts Olivier Bernhard, David Allemann, and Caspar Coppetti.

Federer went ahead with the investment as a part of an endorsement deal after his split with Nike. According to the SEC filing, his stake is less than 5%, could be valued at more than $300 million after Wednesday’s upbeat performance.

The sports gear company’s IPO comes at a time when COVID-19-led gym closures have pushed the sales of athletic gear.

In its SEC filing, On reported that its global revenue rose 85% in the first six months of 2021 and reached $344 million, with North America being On’s biggest market, representing 49% of revenue.

Sporting companies have been performing extremely well and have reported excellent sales. Athletic apparel retailer Lululemon’s stock surged more than 13% after it reported its second-quarter results.

In August, shares of Dick’s Sporting Goods Inc also rallied by nearly 16% after the sporting equipment manufacturer posted a 20.7% sales year-on-year sales growth.

On is trading under the ticker ONON on the New York Stock Exchange.

Picture Credits: Boss Hunting