Shares in iconic footwear brand Dr. Martens (DOCS) enjoyed a strong start to trading on Friday, opening at 425p against an issue price of 370p and changing hands for as much as 465p shortly after the open.
The maker of Air-Ware shoes and boots founded over 60 years ago was placed with investors at a market value of £3.7 billion, or more than ten times the price paid by private equity firm Permira in 2014 and more than five times revenues of £672 million for the year to March 2020.
Nevertheless, investor demand was strong with the offer eight times subscribed according to the company, making it likely it will place a further 52 million shares on top of the 350 million shares sold in the IPO, taking the free float to more than 40%.
‘We have been delighted by the strong levels of interest, engagement and support from such a high-quality selection of institutional investors’, said Chief Executive Kenny Wilson.
‘The successful transformation of Dr. Martens is a great story, and what is even more exciting is the huge potential ahead’, he added.
Investors are eagerly anticipating a raft of new listings which were postponed in 2020 due to the Covid pandemic.
Next Wednesday sees the stock market debut of online greetings card retailer Moonpig, which has priced its shares between 310p and 350p in order to raise between £386 million and £422 million. At the top end of the range, the company’s valuation would be £1.2 billion.
Moonpig’s owners, predominantly private equity firms, have secured agreements with two major institutional funds to underwrite a significant portion of the placing, which means the issue is likely to be oversubscribed and performs well on its first day.
