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Dr Martens valued at £3.7bn in stock market debut

·2-min read
The company famed for its black boots with the yellow stitching said that the offer was over eight times oversubscribed. Photo: Gareth Cattermole/Getty Images
The company famed for its black boots with the yellow stitching said that the offer was over eight times oversubscribed. Photo: Gareth Cattermole/Getty Images

British boots brand Dr Martens kicked off its stock market debut on Friday morning attracting bumper demand in sale valuing the firm at over $5bn (£3.7bn).

Shares in the company were up as much as 19% as it began to trade in London after owner Permira Holdings and other investors raised $1.8bn in the UK’s largest initial public offering (IPO) since September.

The company priced the deal at the top of an indicative range at 370 pence per share. It could sell a further 52.5 million shares on top of the initial 350 million shares sold, amid strong demand.

The company famed for its black boots with the yellow stitching said that the offer was over eight times oversubscribed.

The IPO marks a major win for private equity firm Permira, which bought Dr Martens in 2014 for €380m ($460m, £337m).

The iconic bootmaker confirmed the floating on the London Stock Exchange (^FTSE) earlier this month after more than 60 years in business.

“We have been delighted by the strong levels of interest, engagement and support from such a high quality selection of institutional investors,” said Chief Executive Kenny Wilson.

He added: “The successful transformation of Dr. Martens is a great story, and what is even more exciting is the huge potential ahead.”

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READ MORE: Dr Martens boss set for '£58m windfall' in stock market listing

The company appears to have weathered the economic fallout of the coronavirus pandemic well, despite it taking a toll on the retail sector overall. Its group revenue was £318m in the six months ended 30 September 2020, a rise of 18% year-on-year.

It repaid its furlough money back to the British government in August following good financial results.

The company sells more than 11 million pairs of shoes every year in around 60 countries.

The float comes nearly seven years after the company was bought by private equity group Permira Sales for £300m. Sales under the new ownership have surged, rising from £160m in 2013 to £672m in the year to March 2020.

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