28 Oct Allbirds Seeks $2 Billion Valuation In IPO
Allbirds Inc aims to be valued at over $2 billion in its initial public offering (IPO), according to an updated filing with the Securities & Exchange Commission.
The eco-friendly sneaker maker in a regulatory filing on Monday said it is offering 19.2 million shares at a projected price range between $12 and $14 each, with the selling stockholders. At the top end of that range, the offering would raise about $269 million.
Allbirds filed for an initial public offering on August 31, but the number of shares being sold and the size of the offering were not disclosed.
The new filing also noted that revenue in the third quarter ended September 30 is expected to increase 32 percent to $62.5 million due to higher sales at its physical stores. The loss in the period is expected to range between $15 million to $18 million in the quarter, from nearly $7 million a year earlier due to higher expenses.
Allbirds, founded in 2015 and backed by T Rowe Price, Franklin Templeton and Baillie Gifford, raised $100 million in a Series E funding round in September 2020, earning a valuation of $1 billion.
The footwear brand’s products are produced using naturally derived materials, and the company claims in its filing that the carbon footprint from making a standard pair of its sneakers is about 30 percent less than that of its rivals. It said its supply chain had been carbon neutral since 2019.
Allbirds posted a net loss of $25.86 million for 2020, wider than the $14.53 million loss in the prior year due to costs associated with investments in headcount, operations and digital advertising. Net revenue rose to $219.3 million from $193.7 million, driven by increases in average order value and digital sales. Allbirds had 27 stores as of June 30. In 2020, digital represented 89 percent of sales.
Morgan Stanley, J.P. Morgan and BofA Securities are the lead underwriters.