Shares of Roger Federer-backed On Holding AG jumped more than 47% in their debut on the New York Stock Exchange on Wednesday, valuing the shoemaker at about $11.35 billion.
The IPO comes at a time when athletic gear, especially shoes, has been flying off the shelves at most retailers as COVID-19-led gym closures push people to take up running to keep themselves fit.
The company sold 31.1 million shares in its initial public offering (IPO) priced at $24, well above its $20 to $22 target price range, raising $746.4 million. Its stock opened at $35.40.
On was founded in 2010 by running enthusiasts Olivier Bernhard, David Allemann and Caspar Coppetti, with Federer investing an undisclosed sum in the company in 2019.
The 20-times Grand Slam winner teamed up with the company earlier this year to develop the Roger Pro tennis shoe.
On also makes a 100% recyclable brand of running shoes, called Cyclon, made from castor beans. The shoes are available only on a subscription basis and have to be returned to the company for new ones once they wear out.
The company's listing comes at a time when there is growing global demand and investor interest for sustainable products.
Other sustainability-focused startups that recently went public include Hollywood star Jessica Alba's Honest Co and Oprah Winfrey-backed Oatly Group AB.
Wool footwear maker Allbirds also filed for an IPO last month.
In April, Reuters had reported the shoemaker was targeting a listing in autumn https://www.reuters.com/legal/transactional/federer-backed-shoe-firm-running-targets-autumn-ipo-sources-2021-05-28 that could fetch it a valuation of between $4 billion and $6 billion.
On's existing shareholders also offered a little more than 5 million shares in the IPO, and the company will not get any of those proceeds.
Goldman Sachs & Co, Morgan Stanley and J.P. Morgan are among the underwriters for the offering.