Retail

Allbirds targets a more than $2 billion valuation in upcoming IPO

Key Points
  • The sustainable shoe brand said it is offering 19.2 million shares priced between $12 and $14.
  • At the high end of that range, Allbirds would bring in roughly $269 million in its public debut.
Allbirds shoes consist of wool, and the laces consist of recycled plastic bottles.
Source: Allbirds

Allbirds is targeting a valuation of as much as $2.2 billion in its initial public offering, the company said Monday in a regulatory filing.

Its debut will add to the wave of retail brands that started by selling directly to consumers online that are testing investors' appetites on Wall Street.

The sustainable shoe brand said it is offering 19.2 million shares priced between $12 and $14. At the high end of that range, Allbirds would bring in roughly $269 million in its market debut.

Allbirds has yet to give a date for its IPO. The company is expected to list on the Nasdaq exchange under the ticker symbol BIRD.

Allbirds also divulged Monday that its losses mounted in the latest quarter due to higher expenses. It said it expects to book a net loss of between $15 million and $18 million for the three-month period ended Sept. 30, compared with a loss of $7 million a year earlier.

When it first filed its IPO prospectus in late August, Allbirds said it had yet to turn a profit.

Allbirds said its revenue for the quarter ended Sept. 30 will be between $61 million and $62.5 million, compared with $47.2 million a year earlier. More people are returning to its brick-and-mortar retail stores, and average order values are growing, the company said.

Founded in 2015, Allbirds has primarily relied on the web to sell its wool sneakers and other eco-friendly wares. As of June 30, it operated just 27 stores. But the company has said it plans to make a bigger push into shopping malls and street fronts in the future, calling this an "early phase of a ramp towards hundreds of potential locations."

Later this week, Rent the Runway is expected to make its public debut, as it seeks a valuation of as much as $1.5 billion. An IPO is also expected from outdoor lifestyle company Solo Brands.

They follow eyeglasses retailer Warby Parker, which completed a direct listing last month. Its share price has risen just about 3% since it began trading on the New York Stock Exchange, and its valuation is hovering above $6.3 billion.

Earlier in the year, Figs — which sells scrubs for medical staff — debuted along with The Honest Co., a consumer goods company founded by actress Jessica Alba. Figs' stock is up about 27% since its opening trade in late May. Shares of The Honest Co. are down more than 50% since they debuted on the Nasdaq earlier that month.

Read the latest Securities and Exchange Commission filing from Allbirds here.

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