British boot brand Dr. Martens is planning to go public with a listing on the London stock exchange.
In a statement, the company announced that private equity owner Permira would sell part of its stake in the IPO, alongside other existing shareholders. A source close to the transaction revealed that the deal could value the firm at more than $2.70 billion, according to Reuters.
Dr. Martens, a brand know for its signature yellow stitching and for its young following, was originally founded in 1947. The company’s revenue reached £672 million in the fiscal year ending March 31, 2020.
Permira demonstrated interest in the brand and acquired Dr. Martens in 2014 for $463.26 million. Since its acquisition, Dr. Martens has expanded on a global level and has witnessed revenue growth in the 20 percent to 30 percent range in recent years.
Dr. Martens noted that no new shares would be issued as part of the IPO, which allows the company a free float of at least 25 percent.
With the confidence of improving vaccine distribution and the aid of fiscal stimulus checks, the market has remained somewhat steady during this time.
“Markets have continued their performance from last year… which means that this will be the first of a significant number of IPO announcements. The pipeline is very full,” another source close to the deal said, adding that businesses have been able to profit from the current environment or have remained resilient and have a good deal available to them.
The boost in confidence of brands such as Dr. Martens comes at a time when world stocks have risen by around 3 percent just this year, with Britain’s FTSE 100 witnessing an uptick of roughly 6 percent.
To help Dr. Martens prepare for the IPO, Goldman Sachs and Morgan Stanley will lead joint global coordination efforts. Meanwhile, Barclays, Bank of America-Merrill Lynch, HSBC and RBC Europe will be the company’s book runners. The company is also partnering with Lazard for financial advisory.