Dr Martens To Get Foot In The Stock Market Door
Iconic British footwear brand Dr Martens recently confirmed plans to float on the London market and become a publicly listed company after 60 years in business.
In one of the first big IPO moves of 2021, the considered stock market listing will consist of a sale of shares currently held by private equity group Permira, which would sell down its stake for the free float of 25%.
No Firm Expected Value
The expected value of the shares has not been disclosed, but it is expected that Dr Martens would be able to be included in the FTSE 100 indices.
Goldman Sachs and Morgan Stanley have been appointed as global coordinators in the float proceeds, with banks HSBC, Merrill Lynch, Barclays and RBC Europe as book runners.
Chief executive, Kenny Wilson, emphasised “significant global growth potential” and recent successes as points of interest for investors.
Despite the Coronavirus pandemic battering many other fashion and retail brands, Dr Martens has bucked the trend.
Rising sales have followed a shift to direct-to-consumer online sales which now account for a fifth of revenues and have contributed to a growth of 18% during 2020.
The company sells 11 million pairs of the classic shoe annually in over 60 countries, and is aiming to increase this by expanding its own retail operations rather than through concessions.
It is this large scale investment, claims Wilson, that fuels the brand’s long term, sustainable growth.
Dr Martens have identified an additional 154 million potential customers to the 16 million that have purchased shoes from the company in the past two years.
The brand’s humble beginnings based in Northampton with a work boot in 1960 have been a key part of its counter-culture success, capitalising on the punk movement in the 70s and enjoying a resurgence in the Britpop 90s.
Since then, the distinctive fashion essentials have become a timeless cult classic on a global scale, matching quality with affordability and impressively holding onto that cool reputation.