On Holding AG, the Swiss running brand, estimates it will raise net proceeds of approximately $448.6 million after underwriting expenses from its initial public offering (IPO) according to an updated regulatory filing.
On plans to sell a total of 31.1 million shares in the IPO. Of the 31.1 million, On is offering 25.4 million shares and certain selling shareholders are offering 5.66 million. The IPO price is currently expected to be between $18.00 and $20.00 per share.
In connection with the offering, On and the selling shareholders have granted the underwriters a 30-day option to purchase up to an additional 4.67 million shares to cover over-allotments.
On said the principal purposes of this offering are to increase its capitalization and financial flexibility, create a public market for its Class A ordinary shares and facilitate future access to the capital markets.
On wrote in the updated prospectus, “As of the date of this prospectus, we cannot specify with certainty all of the particular uses for the net proceeds to us from this offering. However, we currently intend to use the net proceeds we receive from this offering for general corporate purposes, including working capital, operating expenses, and capital expenditures.”
On will not receive any of the proceeds from the sale of the Class A ordinary shares by the selling shareholders.
Immediately prior to the completion of this offering, after giving effect to the Share Capital Reorganization, On’s issued and outstanding share capital will consist of 245.7 million Class A ordinary shares and 345.4 million Class B voting rights shares. At the projected IPO pricing range, the company is seeking a valuation in the range of $5 billion to $6 billion.
Reuters had reported in April that On was targeting a valuation of between $4 billion and $6 billion.
On has applied to list its Class A ordinary shares on the New York Stock Exchange under the symbol “ONON.”
On Holding was founded in 2010 and booked $616 million in sales for the 12 months ended June 30, 2021. On believes it is one of the fastest-growing scaled athletic sports companies in the world, having grown its net sales at an 85 percent CAGR from inception through 2020.
The Zurich-based company was founded by Olivier Bernhard, David Allemann and Caspar Coppetti. Swiss tennis pro Roger Federer invested in the company in 2019, according to the filing. The three founders control the Class B shares.
Goldman Sachs & Co. LLC, Morgan Stanley and J.P. Morgan are acting as joint lead book-running managers for the proposed offering, with Allen & Company LLC, UBS Investment Bank, and Credit Suisse are acting as joint book-running managers. Baird, Stifel and Telsey Advisory Group will act as co-managers for the proposed offering.
Photo courtesy On Running
