Sustainable footwear manufacturer Allbirds files for U.S. IPO

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IPO update

Sustainable footwear manufacturer Allbirds said on Tuesday that it has applied for a public listing in the United States in order to capitalize on the demand for environmentally-qualified fashion brands.

The San Francisco-based startup is seeking to list its stock as its so-called “SustainableThe IPO was led by bankers from Morgan Stanley, JPMorgan Chase and Bank of America.

The name of the transaction requires the company to comply with certain environmental, social and governance standards, such as maintaining a minimum ESG rating, implementing “best practices” for addressing climate change, and “committing to make meaningful progress on important ESG matters”, according to Go to regulatory filing.

“We want to help develop a framework for companies to conduct what we call a sustainable public equity offering… Our vision is that Allbirds’ initial public offering will lay the foundation for future SPOs for other companies,” the document said.

Allbirds was founded in 2015 and raised US$100 million in Series E financing in September last year, with a valuation of US$1 billion.

The company is supported by T Rowe Price, Franklin Templeton and Baillie Gifford, Gained popularity Among sustainability-conscious millennial consumers, their wool sports training shoes were called “the most comfortable running shoes in the world” by Time Magazine in 2016.

The footwear brand’s products are produced using natural materials, and the company claims that the impact of manufacturing a pair of standard sports shoes on carbon is about 30% lower than that of its competitors. The company stated that its supply chain has been carbon neutral since 2019.

But according to last year’s sustainability report, transportation is not included in the carbon footprint calculation. The company’s website states that its two series of wool are imported into Milan, processed into fabrics, and then shipped to South Korea to be assembled into shoes.

Shoes become Very popular among tech workers Young professionals in Silicon Valley and cities have driven online sales revenue to jump from US$126 million in 2018 to US$219.3 million in 2020, an increase of 74%. The company expanded rapidly and has operations in 35 countries.

Pre-tax profit increased from 1.3 million U.S. dollars in 2019 to 15.4 million U.S. dollars in 2020. However, the company said it has not yet achieved profitability. The net loss from 2019 to 2020 is US$40.4 million.

The company calls its employees a “herd” and said it expects to continue to lose money for the foreseeable future.

Allbirds stated in its filing that due to the pandemic, “the boundaries between home, gym and games have become blurred” and it expects that more casual workwear will continue to drive sales of its shoes, which retail approximately 100 -150 USD for a pair.

The company had previously Big bets on physical stores It retails through its 27 stores, but says that digital sales are still strong. The company stated in the document that online sales revenue in 2020 has increased from US$113 million in 2018 to US$194.6 million.

The brand stated that the new store helped “improve brand awareness and network traffic,” but the pandemic hurt in-person sales, which accounted for 11% of the company’s revenue, which fell by 17% from 2019 to 2020.

According to a study by McKinsey, Allbirds’ application relies heavily on its ESG certificate, and pointed out that environmental impact and brand trust are becoming more and more important for generation Z and millennial consumers.

Allbirds declined to comment on the content of the IPO documents.

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