Dr Martens says IPO was eight times oversubscribed

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Dr Martens PLC (LON:DOCS) said its initial public offer was eight times oversubscribed and that it will have a market value of roughly GBP3.7bn.


An IPO offer price for the shoe maker and retailer’s shares was set at 370p apiece as they began conditional trading in London this morning and ahead of full trading beginning next Wednesday.


READ: Dr Martens expects to make more than a fashion statement with London float


Dr Martens major shareholder, UK private equity giant Permira, and other current shareholders are selling a combined 350mln shares, equating to a total offer size of just under GBP1.3bn, or 35% its GBP1bn share total share capital at admission.


A valuation of GBP1bn had been mooted a year ago when talks were being held about a potential sale to US private equity firm Carlyle Group, with Permira also then thought to be mulling a US float.


With the offer oversubscribed, it looks like an over-allotment option of a further 52.5mln shares will be made available by Permira, which would increase the number of shares in public hands to 403mln or 40.3% of the total.


In a statement, Kenny Wilson, chief executive of Dr Martens, 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. We are proud to take our place as a London listed company, both delivering as a successful plc and more importantly continuing to grow our brand around the world.”


Permira will be subject to a 180-day lock-up arrangement from the date of admission, while directors, current management and employee shareholders and certain former executives will be subject to a 365-day lock-up.


At its initial market size, the company would find itself in the upper echelons of the FTSE 250 index.

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