Providing further details about its planned public offering, On Holding said it plans to raise net proceeds of around $448.6 million by offering a total of 31.1 million shares on the New York Stock Exchange at a unit price of between $18.00 and $20.00. Out of the total package being initially offered, 5.66 million shares would be sold by some of On’s shareholders and the others by the company. An additional 4.67 million shares could be offered over a 30-day period to cover over-allotments.
The exact price of the shares will be fixed when they will start trading on the NYSE on Wednesday, Sept. 15. As previously reported, Credit Suisse, Goldman Sachs, Morgan Stanley and J.P. Morgan are managing the IPO.
Assuming that the over-allotments are fully exercised, the parent company of On Running would be valued at around $5.2 billion at mid-point, based on a total float of 274,998,125 ordinary Class A shares. Prior to the completion of the offering, the company’s share capital is set to be divided into two classes of shares: 245.7 million ordinary Class A shares and 345.4 million Class B shares with voting rights.
According to the latest documentation filed with the U.S. Securities & Exchange Commission, the main purposes of the IPO are to increase its capitalization and financial flexibility for future access to the capital markets. The net proceeds would be used for working capital, operating expenses, capital expenditures and other corporate purposes.
Interestingly, On’s top managers are cashing in, but institutional shareholders and their principals, who collectively own most of the Class A shares, would keep them, evidently in view of their expected future appreciation based on projected earnings. The institutional investors include Point Break Capital, Stripes and Hillhoouse.
On has already reported sales of 315.4 million Swiss francs (€294.1m-$345.1m) for the six months ended June 30, after growing at an average annual rate of 85 percent since it was founded in 2010 in Switzerland. It turned around to a net profit of CHF 3,759,000 (€3.50m-$4.12m) during the period. It also reported adjusted Ebitda of CHF 50 million (€45.8m-$46.6m) for 2020, up by 66 percent from the prior year, on revenues of CHF 425.3 million (€396.7m-$465.8m).
The three co-founders of the Swiss-based company - David Allemann, Caspar Coppetti and Oliver Bernhard - are selling 1,562,500, 1,250,00 and 1,250,000 shares, respectively. Martin Hoffmann, chief financial officer and joint CEO, is selling 562,500 shares. Another co-CEO, Marc Maurer, is selling 1,032,609 shares. The five will still control 59.4 percent of the votes after the IPO through their Class B shares, which carry ten votes each compared with one vote for each Class A share. The three founders will control 53.3 percent of the votes. No mention was made in the documentation of Roger Federer, a recent investor in the company.
