Salem Radio Network News Friday, December 3, 2021

Business

Footwear maker Allbirds targets over $2 billion valuation in U.S. IPO

(Reuters) – Sustainable footwear maker Allbirds Inc said on Monday it was targeting a fully diluted valuation of as much as $2.2 billion in its initial public offering in the United States.

The company, backed by asset manager Franklin Templeton, said it is offering 19.2 million shares priced between $12 and $14 each, along with the selling stockholders. At the top end of that range, the IPO would fetch about $269 million.

Allbirds said it expects higher expenses to drive up net losses to about $15 million to $18 million in the three months ended Sept. 30, compared to a loss of nearly $7 million a year earlier.

The wool footwear maker is among several companies that have tapped investor interest in sustainable or environmentally friendly goods. In May, Oprah Winfrey-backed vegan milk maker Oatly Group AB and Jessica Alba’s consumer goods company Honest Co listed their shares.

Allbirds, which is also backed by Oscar-winning actor Leonardo DiCaprio, uses a plant-based alternative to leather for its shoes. It has also partnered with Adidas to create a range of sustainable sneakers.

Morgan Stanley, J.P. Morgan and BofA Securities are the lead underwriters for the offering.

(Reporting by Niket Nishant in Bengaluru; Editing by Ramakrishnan M.)

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