Swiss running shoes and sportswear brands$On Holding AG (ONON.US) $IPO terms were announced on Tuesday, Sept. 7, EDT, which plans to issue 31.1 million shares at a price of $18 to $20 per share, raising $591 million. According to the outstanding shares listed in its filings with the Securities and Exchange Commission, its market capitalization after listing will exceed $6 billion. Some investors regard it as "American stock Li Ning Co. Ltd.".

On Holding plans to list on the New York Stock Exchange under the symbol "ONON". Goldman Sachs Group, Morgan Stanley, JPMorgan Chase & Co and others will act as co-underwriters and will formally set the price this week on September 13.

Business products

On Holding AG, the owner of On Running, a high-performance shoe maker, was founded in 2010. On is co-founded by Triathlon world champion Olivier Bernhard and his two friends Caspar Coppetti and David Allemann. Investors in the On Running footwear brand also include tennis legend Roger Federer, who became a shareholder in 2019 and helped design a shoe named after him last year.

A number of professional athletes are also users of On and wear On products in international events, including Nicola Spirig, which won the silver medal in Triathlon at the Rio Olympics in 2016, and Javier Gomez Noya, which became Triathlon's long-distance champion in 2019.

The company has established a global customer base in more than 60 countries, including Germany, the United States, Japan, China and Brazil. As of June 30, 2021, On's products are available in about 8100 retail stores in more than 50 countries around the world, and also do business through direct to-consumer ("DTC") channels.

On's global influence

The DTC channel is mainly driven by the company's website, but also includes the company's Tmall and JD.com in China, as well as its recently opened flagship store in New York and four retail stores in China. Of the revenue in 2020 and 2021H1, 37.7% and 36.6% are achieved through DTC channels, respectively. In 2020, the number of visits to the company's e-commerce platform exceeded 60.4 million, an increase of 136% over the same period last year. DTC channel is the fastest growing channel, and its gross profit margin is higher than that of wholesale channel.

All of On's products are made in Switzerland. Based on genes originating in northern Europe, the company has regarded the impact on the environment as the core value of its business since its inception, so it pays particular attention to the use of preferred materials and reducing CO2 emissions. In 2020, the company released the first 100% recyclable shoe Cyclon, and through its groundbreaking design and subscription model, Cyclon has won the 2021 ISPO Product and Sustainability Achievement Award.

Financial profile

The growth rate of On's revenue is among the highest among sports companies, with a compound annual growth rate of 85 per cent from its establishment in 2010 to 2020.

The company's 2020 revenue was 425.3 million Swiss francs, an increase of 59.2% over the same period last year, with a net loss of 2750 Swiss francs; as of 2021H1, revenue was 315.5 million Swiss francs and net profit was 3.8 million Swiss francs.

Of this total, revenues in the European Union, North America and the Asia-Pacific region were 187.5 million, 208.1 million and 23 million Swiss francs respectively, up 46.1 per cent, 86.2 per cent and 28.7 per cent over the same period last year.

In terms of gross profit margin, gross profit margins in 2020 and 2021H1 were 54.3% and 59.3% respectively, up 0.76% and 3.1% over the same period last year, mainly due to the persistently high share of DTC sales.

Equity structure

The following is a simplified organization chart of the company, with all subsidiaries directly or indirectly owned by On Holding AG.