Fall initial public offering (IPO) season is getting into full swing, and one company is making its Wall Street debut while riding the momentum of a huge sponsorship deal. Swiss shoemaker On Holding will be offering up shares of its stock to the public for the first time this autumn under the ticker “ONON.” And the event could be one of the biggest public offerings of the year. But what is On? And what is selling so many investors on the ONON stock IPO?
If you’re a fan of running, you’ve surely at least heard the On name in the last few years. The Swiss company is breaking into the U.S. market in a big way with its host of running shoes, built for the pavement and the trail alike. The company’s running shoe technology aims to put the shoe at the same level of performance as industry monoliths like Nike (NYSE:NKE) and Asics (OTCMKTS:ASCCY).
Another way On is stepping into the spotlight is through its major deal with tennis legend Roger Federer. The 20-time Grand Slam winner had a longstanding partnership with Nike, which he dropped in 2018. Since 2020, the star athlete has been exclusively wearing his own line of On tennis shoes.
The massive collaboration between Federer and his home country’s upstart brand is helping to bring hype to the company’s IPO. This week, investors are seeing On Holdings apply for their initial public offering. The filing, made on Monday, sees the company seek to sell over 30 million shares of its company’s stock on the U.S. market. The listing, if approved, will see the company list under the ticker symbol “ONON.”
How Much Will Shares of the ONON Stock IPO Cost?
On footwear is rebounding from the pandemic slump this year, but it has a ways to go to cover losses. The company is posting $4.1 million in revenue for the first six months of 2021. However, in the first half of 2020, the company saw a whopping $36 million in losses. This most recent report does bear a very impressive $150 million year-over-year increase in sales, however. And, of course, with the level of hype the IPO is driving, it can surely secure the $100 million it hopes to raise.
In order to raise that money, the company hopes to offload a total of 31.1 million shares of Class A ordinary ONON shares. The company expects shares to sell for a price somewhere between $20 and $22. Investors will have to sit tight and wait for pending approval of the IPO, but they can expect to see the athletic shoe company hit Wall Street in the near future.
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.