Dr. Martens is considering the IPO in London

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The company, which sells 11 million pairs of shoes a year in more than 60 countries, said in a filing Monday that an IPO would involve the sale of at least 25% of its shares by existing owners, including private equity firm Permira. No new shares will be issued.
Dr. Martens joins a growing list of companies that could get an IPO in London this year. While there are no confirmed listings, food delivery company Deliveroo, McLaren Group, Jaguar Land Rover and craft brewer BrewDog may be looking at IPOs, stockbroker IG said.

The Brexit trade deal and an early rollout of Covid-19 vaccines have fueled sentiment towards UK investment, said Susannah Streeter, senior investment and market analyst at Hargreaves Lansdown.

After a loss of 14.3% in 2020, the FTSE 100 (UKX) is up 5.5% this year compared to the S&P 500’s (SPX) 1.8% profit, data from Refinitiv shows. The S&P 500 climbed 16.3% last year.

“Interest in IPOs has also been fueled by the frenzy surrounding Airbnb and Doordash IPOs in the US, which were hugely oversubscribed,” Streeter told CNN Business. Dr. Martens has benefited from a shift to online shopping during the pandemic, but also relies on “erratic fashion tastes,” which may change in the future, she added.

The British brand launched its signature 1460 eight-hole boot in 1960. According to the company’s website, it was initially worn by postmen and factory workers, but later picked up by ska-loving young people who advocated the British working-class style.

Pete Townshend of English rock band The Who became the first celebrity to wear them, turning a workwear boot into a symbol of rebellious youth culture.

Permira bought Dr. Martens in 2014 for € 380 million ($ 462 million) and has invested in its direct-to-consumer channels, including the company’s physical stores and e-commerce.

Despite most of the stores being closed for months due to the pandemic, sales over the six months to September 30 increased 18% to £ 318 million ($ 428 million) compared to the same period in 2019, the filing said.

Company sold 5.5 million pairs of shoes during that period – 700,000 more compared to the previous year – and doubled income from e-commerce.

CEO Kenny Wilson said the brand has “significant global growth potential” going forward. “Our iconic brand appeals to a wide variety of consumers around the world who wear our shoes to express their individual style,” he added.

– Julia Horowitz contributed reportg.

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