Dr. Martens manufactures shoes at its Northamptonshire site

Dr. Martens manufactures shoes at its Northamptonshire site

British footwear brand Dr. Martens saw its share price soar 22% in trading on Friday (29 January) following its London Stock Exchange market debut.

The company, owned by Luxembourg-based IngreLux since 2014, which is linked to private equity giant Permira, saw stock close at 450 pence on Friday. Dr. Martens had priced its IPO at the top end of an initial range of 370 pence, valuing the company at GBP3.7bn (US$5.06bn).

It is understood the boot maker made around GBP1.3bn from the initial public offering, which comprised 350m existing shares.

On announcing the offering, Kenny Wilson, CEO of Dr. Martens, said: "We have been delighted by the strong levels of interest, engagement and support from such a high quality selection of institutional investors. The successful transformation of Dr. Martens is a great story, and what is even more exciting is the huge potential ahead. We are proud to take our place as a London listed company, both delivering as a successful plc and more importantly continuing to grow our Brand around the world."

The brand sells globally and recorded annual sales of GBP672m (US$906m) in the year ended March 2020 and EBITDA of GBP184.5m.

It has also made a significant push to online as stores globally remain pressured as a result of the Covid pandemic. Direct-to-consumer channels have grown to comprise 45% of revenue in FY20 up from 26% in FY15.

The group said in a bourse filing on 11 January that it has built an integrated global supply chain so it can scale sustainably across geographies and channels, in addition to reducing costs. It has "de-risked" this supply chain by diversifying both the supplier and factory base outside of China, as well as establishing a detailed bottom-up supply chain cost savings programme.