Swiss footwear brand On Running filed with the SEC on Aug. 23 for a future IPO. Backed by tennis legend Roger Federer, On has been able to expand to thousands of retail stores and grow its e-commerce direct-to-consumer footprint.
Retail success doesn't necessarily equate to a thriving public stock. However, On has investors wondering if this consumer-facing running brand holds a shot on a U.S. exchange. When is On going public, and what price can investors look forward to?
Roger Federer is the main face of On
World tennis champion Federer currently has his own line of On Running footwear, including The Roger Centre Court, The Roger Clubhouse, and The Roger Advantage. All of these range in price from $140–$190 per pair, which puts them in the mid-range for premium footwear.
On is eyeing a U.S. exchange and ticker symbol
According to reports, On Running hopes to snag a spot on the NYSE. The brand plans to use the ticker symbol "ONON."
From first glance, On's fundamentals look decent
On products are available online and in 8,100 storefronts across the world. According to the company, e-commerce revenue accounts for a major chunk of its net sales. In the first half of 2021, 36.6 percent of the net sales came from DTC channels, especially the company's website.
According to the company's F-1 (a type of registration statement for foreign companies seeking a U.S. stock market listing), On is in the green as far as profit is concerned. That's more than some brands can say even years after going public.
According to On partners, "43 [percent] of our e-commerce customers have already purchased two or more items, and this number keeps increasing."
The five On partners include Caspar Coppetti, David Allemann, Marc Maurer, Martin Hoffmann, Olivier Bernhard. Risk factors align with industry norms, and On doesn't divulge any abnormal circumstances that could interfere with investor success. The company plans to use IPO capital to spearhead growth.
When is On going public?
On Running was founded in Switzerland—the country where Federer was born and currently lives. On has been a name since it was founded in 2010, but Federer didn't back the brand until 2019.
Now, On is moving toward an IPO that could come as soon as the end of the year. However, the IPO is still entirely in the planning phase. The brand will have to divulge a lot more information before investors can set their calendars.
Keep an eye on the stock price for On Running
On Running set a placeholder IPO fundraising goal of $100 million, but that will likely change as developments come to fruition.
The brand will update the total funding goal once it identifies a price range per stock as well as the number of stocks it plans to sell. Federer's own net worth is set to swell after his investment hits the public market.