On Holding AG
(Note: On Holding priced its IPO at $24 – $2 above the top of its recently increased price range of $20 to $22 – and sold 31.1 million shares – to raise $746.4 million. On Holding had raised its price range to $20 to $22 – up from $18 to $20 initially – and kept the number of shares the same at 31.1 million – in an F-1/A filing dated Sept. 13, 2021.)
Tennis star Roger Federer is an investor in On Holding, a premium sports shoe and apparel company that he joined in 2019 as an active co-entrepreneur. While developing a competition tennis shoe, Roger suggested extending On’s patented technology to a tennis sneaker family to re-invent how age-old tennis sneakers are made. This is enriching our performance product offering and we believe Roger’s perspectives and insights as a professional athlete will help improve our product development, marketing and fan experiences. Our Performance Outdoor products embrace a new approach to taking on the mountains: light and fast, with shoes and outdoor apparel engineered to free you from the weight and bulk of traditional outdoor gear.
On’s Origin Story: As a professional athlete, three-time World Champion and six-time Ironman Champion, Olivier Bernhard devoted himself to creating a running shoe that would give him the perfect running sensation. Olivier’s quest gave rise to the symbiosis of running experience and engineering expertise that would become On’s CloudTec technology. Dozens of prototypes were developed, but the basic concept – cushioned landing, explosive take-off – remained paramount throughout. It was this unique running sensation that convinced Olivier’s friends Caspar Coppetti and David Allemann to join Olivier in his quest. Together with Olivier, they formally established On in Zürich, Switzerland in January 2010.
Just a month after the company was founded, early On prototypes won the ISPO Brand New Award, one of the most important prizes for innovation in sport. Test runners were enthusiastic and spoke of running on clouds. In July 2010, the first specialty running stores carried On shoes on their shelves.
From these humble beginnings in Zürich, On set out in 2010 with a big ambition: to change the world of running for professionals and amateur runners alike. As On started to gain traction in several key markets, the three co-founders brought on Marc Maurer and Martin Hoffmann as equal partners in 2013 to scale and professionalize the business. Together, we have built a distinct culture that empowers the On team to make decisions and foster innovation, allowing On to rapidly scale while retaining the entrepreneurial mindset of a startup. We believe this partnership approach to leadership has been an integral part of On’s success over the past decade, and we expect it to continue.
On is a premium performance sports brand rooted in technology, design and impact that has built a passionate global community of fans across more than 60 countries. We have a selective wholesale presence in approximately 8,100 premium retail doors globally and we generated 37.7% and 36.6% of our net sales in 2020 and the six-month period ended June 30, 2021, respectively, through our direct-to-consumer (“DTC”) channel, which is primarily driven by our website.
We believe we are one of the fastest-growing scaled athletic sports companies in the world, having grown our net sales at an 85% compound annual growth rate (“CAGR”) from inception through 2020 to CHF 425.3 million for the year ended Dec. 31, 2020. Our growth has continued in 2021, with net sales growing by 84.6% to CHF 315.5 million for the six-month period ended June 30, 2021 compared to the six-month period ended June 30, 2020. As a Swiss company with a small home market, we opted to expand globally from the very beginning, and today we have a fast-growing presence across a number of international markets including, among others, Germany (first entered in 2011), the United States (2013), Japan (2013), China (2018) and Brazil (2018). We believe this global presence within the large global footwear and apparel market positions us well for future growth.
**Note: For the first six months of 2021 (ending June 30, 2021), On Holding reported net income of 3.8 million Swiss francs (US$4.14 million) on net sales of 315.5 million Swiss francs (US$344.01 million).
|Industry:||Rubber & Plastic Footwear|
|Address||Pfingstweidstrasse 106 8005 Zürich Switzerland +41 44 225 15 55|
|Phone Number||+41 44 225 15 55|
|View Prospectus:||On Holding AG|
|Revenues||$731.89 mil (last 12 months)|
|Net Income||$ mil (last 12 months)|
|Price range||$24.00 - $24.00|
|Est. $ Volume||$746.4 mil|
|Manager / Joint Managers||Goldman Sachs/ Morgan Stanley/ J.P. Morgan/ Allen & Co./ UBS Investment Bank/ Credit Suisse/ Baird/ Stifel/ Telsey Advisory Group|
|Expected To Trade:||9/15/2021|
|Quiet Period Expiration Date:||Available only to Subscribers|
|Lock-Up Period Expiration Date:||Available only to Subscribers|
|SCOOP Rating||Available only to Subscribers|
|Rating Change||Available only to Subscribers|