On Holding, the Swiss shoemaker backed by tennis superstar Roger Federer, has announced plans to launch an initial public offering (IPO) on the New York Stock Exchange. The company, known for its trainers and clothing, filed for the IPO on Monday, revealing that it is currently profitable. In the first half of this year, On Holding reported a net income of CHF3.8 million, a significant improvement from the CHF33.1 million loss in the same period last year. Additionally, net sales soared by 85% to CHF315.5 million in the first half.

On Holding was founded in 2010 by Olivier Bernhard, David Allemann, and Caspar Coppetti, and its products are now sold in 50 markets worldwide. However, it was Roger Federer’s involvement in the company that brought about a surge in publicity. Having joined On Holding two years ago, Federer collaborated with the company on the development of the highly successful Roger Pro footwear collection. Furthermore, US venture capital firm Stripes owns a 12% stake in the company.

The partnership with Federer not only enhances On Holding’s marketing efforts but also adds substantial credibility to the brand. Historically, associations with prominent athletes have proven to be highly advantageous for sportswear companies. In the case of On Holding, Federer’s endorsement carries significant weight. In its last funding round, the company was valued at almost $2 billion, leading experts to speculate that the IPO could result in a valuation of anywhere between $4 billion and $6 billion.

IPOs are not solely based on a company’s current financial performance, but also take into consideration its future potential. The inclusion of a celebrity name, particularly one as influential as Federer, holds immense importance. This is evident in both Federer’s involvement with On Holding and Andy Murray’s partnership with the UK’s Castore. These collaborations underscore the crucial role that celebrity endorsements play for such companies.

The clothing and accessories sector is experiencing a rising trend of companies listing on major stock markets. This strategic move allows companies to reach a larger number of investors and raise capital for future expansion plans. On Holding’s decision to go public demonstrates its growth ambitions and confidence in its products and brand.

As On Holding prepares for its upcoming IPO on the New York Stock Exchange, the company’s performance and potential are closely watched. With the backing of Federer and impressive sales growth, the future looks promising for this Swiss shoemaker. Investors eagerly anticipate the outcome of the IPO, which is expected to value the company at several billion dollars. With the support of one of tennis’ biggest superstars, On Holding is poised to make a significant impact in the global footwear and clothing market.

Useful Links:
1. On Holding Official Website
2. New York Stock Exchange