Allbirds Seeks $2.2 Billion Valuation in IPO
Allbirds Prices Shares Ahead of Public Debut
Allbirds, the sustainable footwear company which sells directly to consumers, is aiming to be worth $2.2 billion when it debuts as a publicly traded company. In a filing with the Securities and Exchange Commission yesterday, the startup said it plans to sell 19.2 million shares priced between $12 and $14 per share. If Allbirds is able to price shares at the top of its range, the company will raise around $269 million.
The footwear company plans to trade on the Nasdaq under the ticker “BIRD.” The exact date of Allbirds’ IPO has not been released. Allbirds launched in 2015, selling wool sneakers and sustainable clothes to customers online. Since then it has opened 27 stores with a long-term aim of having hundreds of locations.
Losses Rising for Allbirds
In addition to sharing pricing targets for its IPO, Allbirds disclosed other financial information, including its losses for its most recent quarter. Allbirds expects a net loss of $15 million to $18 million for the quarter which ended September 30. For the same quarter a year ago, Allbirds’ losses were $7 million. The company blamed higher expenses for mounting losses.
Revenue for the company’s most recent quarter is forecast to come in at somewhere between $61 million and $62.5 million, compared to $47.2 million last year. The company also said it is seeing more customers return to its physical stores and shared that the average value of ecommerce orders is increasing.
A Wave of IPOs for Direct-to-Consumer Brands
Allbirds is among a number of direct-to-consumer retail brands raising money through IPOs this year. They are testing investors’ appetite for brands that forego the traditional way of selling to customers. Rent the Runway, the online retailer which rents out high-end clothes, is expected to debut this week, aiming for a $1.5 billion valuation. Solo Brands, an outdoor lifestyle company, is also gearing up to go public. Meanwhile, eyeglass retailer Warby Parker (WRBY) went public via a direct listing in September. The company is valued at around $6.3 billion.
Allbirds is testing investors’ appetite for another direct-to-consumer brand at a busy time. It will be interesting to see if investors are willing to overlook mounting losses or if it will give them pause when the company makes its public debut.
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