Dr Martens is planning an initial public offering on the London Stock Exchange, as the renowned footwear and footwear maker is looking to expand its footprint in the £ 341 billion global footwear market.
The British company – famous for its signature stomping shoes that celebrities include top model Gigi Hadid and Hollywood actress Kristen Stewart, could be worth around £ 3 billion ($ 4 billion), according to analysts.
The float, which would be one of the first major IPOs of the year, came more than seven years after Griggs’ family sold Dr Martens for £ 300 million to Permira. The private equity group plans to sell their money down as part of the IPO.
“The news that we are planning to launch highlights the great achievements of Dr. Martens over the past seven years, ”said Dr Martens Chief Executive Kenny Wilson. “More importantly, the global growth potential for Dr. Martens in the future, ”he said.
Created by military physician Klaus Märtens, who designed the air conditioner to help relieve his back pain, Dr. Martens – known as ‘Docs’ in the US – hit the British retail market in the 1960s. The classic 1460 eight-eyed shoe in cherry-red leather was initially aimed at workers who spent the day on their feet, but were soon adopted by youth subcultures making the statement. fashion front.
The brand was upgraded to cult status after Pete Townshend, lead singer of rock band The Who, said he would go to bed on a trip with two things: “A bottle of Dr. Cognac and a shoe. Martens. “But in 2003, it suffered a change in fashion tastes and, under pressure from falling sales, halted all UK production and moved its factory to China and Thailand.
Today, Dr. Martens sells more than 11 million pairs of shoes and boots each year in more than 60 countries. In the year to March 2020, Dr Martens generated income of £ 672 million ($ 907 million), with pre-interest earnings, tax, depreciation and depreciation of £ 184 million.
AJ Bell investment director Russ Mold said the IPO was likely to attract the attention of investors both in the UK and abroad, who want to see how sales go. “His boots may look good, but the real test for investors to participate with their money is whether the shares can go any further.
“While the employment growth figures could have an impact, it doesn’t look good when there are already holes elsewhere in the investment case,” Mold said.
Since taking control of the company, Permira has invested in expanding their e-commerce offering, which has been one of the key contributors to significant growth in recent years, which representation 30% of total revenue in the nine months to December 31, 2020.
“We have invested heavily to ensure we deliver the best digital and storage experiences to connect with our customers, and through this we are driving our sustainable, long-term growth,” he said. the company.
However, Dr. Martens is still under-represented in some major global markets, including the U.S. and China, where he sold 12 and less than 1 pair of boots per 1,000 population, respectively. , in 2020, compared to 31 pairs per 1,000 population in the UK
Read: China’s ‘volatile’ global luxury market share is almost doubling amid pandemics
News of Dr. Martens ’planned move raises hopes of a resurgence in the European IPO market, which has been the last to run innovative IPOs technology in the U.S. last year. In December, shares in the start of DASH’s DoorDash food delivery delivery,
and home rental company Airbnb ABNB,
has risen as much as 115% on the first day of trading in New York.
Read: IPOs in 2021: After a year of distributed grants, these tech companies plan to continue
Companies wanting to list their shares in London were inspired by last year’s IPO of online health and beauty retailer The Hut Group THG,
which has seen its shares rise by almost 60% since the market began.
Read: Hut Group shares rise more than 30% on first market in London’s largest-ever IPO tech
Those considering IPOs include Moonpig, which owns privately owned property Exponent Private Equity looking to raise money amid increased demand for digital greeting cards at the time of the pandemic. COVID-19. The industry could be worth around £ 1 billion, according to a report by Sky News.
Another company that says it is looking at an IPO is food delivery business Deliveroo, which analysts at Hargreaves Lansdown said could be aiming for a valuation of £ 3.2 billion.
Dr Martens has hired Goldman Sachs GS,
and Morgan Stanley MS,
as global coordinators for the IPO, and Barclays BCS,
HSBC HSBC,
BAC Bank of America,
and RBC Europe as book runners. Lazard works as a financial advisor to the company.