The company had priced its initial public offering at between 330p and 370p, and it has hit the top end of the range. As a result of the demand, the principal shareholders have chosen to sell an additional 52.5m shares by exercising an over-allotment option, which will take the overall windfall up to £1.5bn. This will bring the total number of shares in public hands to 403m, accounting for 40.3% of Dr Martensâ total issued share capital.
Shares were up 22% at 450p in conditional trading on Friday, among investors who were allocated shares in the IPO, but full market trading begins on 3 February.
Bosses at Dr Martens hope the footwear company will be worth a little under £4 billion when it lists on the Stock Exchange in London for the first time next week.
The shoe brand said it will set a 370p-per-share offer price when it floats next Wednesday, February 3.
That will imply a valuation of £3.7 billion for the company, which is making 35% of the business available to investors.
Chief executive Kenny Wilson said: “We have been delighted by the strong levels of interest, engagement and support from such a high quality selection of institutional investors.
“The successful transformation of Dr Martens is a great story, and what is even more exciting is the huge potential ahead.
Shares in Dr Martens have jumped on their first day of trading on the London Stock Exchange after strong demand from investors, valuing the company at more than £3.7billion.
The iconic boot maker, which started conditional trading today under the ticker DOCS, had set a target price of 370p per share, but the stock opened almost 15 per cent higher at 425p and closed even higher at 450p.
While only investors who had applied for shares are allowed to trade today, unconditional trading will being on Wednesday next week, when the company will fully list on the main market of the London Stock Exchange.
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LONDON (Reuters) - Classic boot brand Dr. Martens DOCS.L kicked off its London IPO in style on Friday, attracting bumper demand in a sale valuing the company at more than $5 billion that is likely to spur other British companies to follow suit.
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Dr. Martens’ shares were up 16% in their market debut after the company priced the deal at the top of an indicative range at 370 pence, raising nearly 1.3 billion pounds and giving it a market capitalisation of 3.7 billion pounds ($5.07 billion).
Dr. Martens, known for its chunky boots with yellow stitching, is the first of several British IPO candidates to hit the market, as issuers look to make up for 2020 when COVID-19 wreaked havoc on economies and dented stock market listing volumes in Europe.
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