IPO (initial public offering) season is continuing with a very busy day of public offerings across the retail sector. One company investors are especially keeping their eyes on today is On Holding (NYSE:ONON). ONON stock has had a bit of a renaissance through the last two years, and investors are hoping to capitalize on the company’s hype — particularly around its massive partnership deal with a storied athlete.
On has grown its business in a huge way over the last year. The novel coronavirus pandemic has lifted the athletic retail business, as consumers turn to new ways of exercising. Additionally, the company reaps the benefits of its crossover into other sport shoe categories.
How much has On grown up in this time period? And what will its debut on the public market look like? Here’s what you need to know.
ONON Stock Capitalizes on Huge Year-Over-Year Growth With Public Offering
- On Holding is a Swiss athletic shoe company. It primarily focuses on crafting running and trail running shoes.
- The company was hit hard by the pandemic initially; in the first half of 2020, the company fell victim to losses topping $36 million. However, in the first six months of 2021, the company is posting $4.1 million in income.
- Year-over-year sales growth for the company comes out at over $150 million.
- On has a lot of factors to thank from this — and none more so than Roger Federer. The 20-time Grand Slam winner and tennis legend signed with his home country’s brand in 2020 after a multi-decade contract with Nike (NYSE:NKE) soured.
- In June, Federer and On released a personalized collection of tennis shoes for the great. The collection marks On’s first venture outside of the running shoes space and into a new sport. It will be very interesting for investors to see how the company’s sales grew through Q3, as it is the first full quarter in which these new products are available.
- As for its future growth, the company says it has a clear-cut path; in its prospectus, the company lauds its growth outside the Swiss market, but while this brand awareness “remains below established sportswear peers,” the company has an obvious mission to grow international awareness.
- On Holding filed for its IPO back in August, hoping to sell shares of its stock for a price between $18 and $22. In this sale, it hopes to capture $100 million in funding.
- After yesterday’s pricing, it turns out ONON stock will sell above its projected range; ONON sold 31.1 million shares at $24 per share, raising over $746 million.
- Investors will be able to buy their own shares of ONON from the New York Stock Exchange starting today.
On the date of publication, Brenden Rearick did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
