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New Zealand-American company Allbirds raised more than $300 million in its initial public offering (IPO) recently, with shares surging by 91 per cent on the first day of trading to give the San Francisco-based sustainable footwear and apparel seller a valuation of $4.1 billion. It raised its offering to 20.2 million shares at $15 each up from its original target of selling 19.2 million shares priced between $12 and $14.
Allbirds had previously been valued at a reported $1.7 billion, after raising $100 million from Franklin Templeton, T. Rowe Price, Baillie Gifford and others in September 2020. The company had raised a total of $200 million since it was founded in 2015.
Allbirds has yet to generate profits, posting losses of $25.9 million on revenue of $219 million last year, according to regulatory filings. It is investing in the business for the long term, spending money to develop new materials and build a sustainable, but more expensive supply chain, as per US media reports.
Allbirds raised over $300 million in its initial public offering, with shares surging by 91 per cent on the first day of trading to give the San Francisco-based footwear-apparel seller a valuation of $4.1 billion. It raised its offering to 20.2 million shares at $15 each up from its original target of selling 19.2 million shares priced between $12 and $14.
Allbirds has begun labeling all of its products with their carbon footprint and says its average pair of shoes require 30 per cent less carbon to make than a standard pair of shoes. It continues to incorporate new materials, like crab shells and eucalyptus, into an expanding selection of footwear and also apparel.
Allbirds started out by selling directly to consumers online, but now it has 35 brick-and-mortar stores and plans to open in hundreds of additional locations in the coming years.
Fibre2Fashion News Desk (DS)
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