The value of Dr Martens’ shares experienced a decline as its former owner, private equity firm Permira, sold a portion of its stake in the company. On Thursday, the company’s shares dropped significantly from £4.21 to £3.80. However, the decline was less severe on Friday, with shares dipping only a few percentage points. Permira generated £257 million from the sale by selling millions of shares at £3.95 each, reducing its holding by 6.5% but still retaining a 37% stake in Dr Martens.

This 13% drop in share price on Thursday was the largest decline the company has ever experienced since it went public almost a year ago. Permira’s decision to sell shares makes strategic sense, considering their ownership of Dr Martens since 2014. The private equity firm initially purchased the brand for £300 million and has profited significantly from the investment. When Dr Martens went public last January, Permira held a 75% stake, allowing them to realize substantial profits from the IPO. Currently, the shoe business has a market capitalization of £3.71 billion, and Permira’s remaining 36% stake is valued at approximately £1.3 billion. While it is expected that Permira will continue to sell shares, the firm has not yet disclosed its future plans.

It is common for newly listed companies to experience price sensitivity when large stakes are sold, but Dr Martens’ decline in share price does not reflect any lack of confidence in the company. The brand has consistently delivered strong financial results, solidifying its position as a leader in the footwear industry. Analysts predict further share sales by Permira but maintain that Dr Martens’ performance remains robust.

Here are two links with relevant information on the topic:
Dr Martens shares drop after former owner Permira sells stake
Dr Martens: Private equity firm Permira sells stake in footwear company