Dr Martens jumps in London debut on boots’ appeal

Bloomberg

British bootmaker Dr Martens Plc soared in London trading after owner Permira Holdings and other shareholders raised 1.3 billion pounds ($1.8 billion) in an initial public offering, cashing in on the lasting popularity of its cult footwear. The stock surged 22% to close at 450 pence after pricing its IPO at 370 pence, the top end of an initial range. It’s the UK’s largest domestic IPO since September.
The footwear got its start in the ruins of postwar Germany. Later marketed in Britain, its boots were priced at two pounds apiece, with its eight-hole workmen’s model becoming a seminal piece of footwear for Britain’s rebellious youth in the following decades. The Who’s Pete Townshend wore the boots, which later were adopted in glam and punk circles.
Designed with an air-cushion sole and known as “Doc Martens” to fans, the brand remains a global fashion statement recognisable by both Boomers and Millennials. The company now is benefiting from a pandemic-induced surge in online shopping.
“It’s quite rare for an iconic brand to float,” said Oliver Brown, a fund manager at RC Brown, which participated in the offering. “Dr Martens is attractive to investors because it has a loyal customer base, high margins and holds a lot of growth potential by expanding its store presence and making inroads in markets such as North American and China,” he said.
Dr Martens is one of several retailers to tap European public markets over the past few months. It is the largest IPO in London by a UK company since online shopping emporium THG Plc, which operates sites selling everything from skincare and beauty products to protein powder, in September, according to data compiled by Bloomberg.
The coronavirus pandemic and ensuing lockdown orders have choked brick-and-mortar stores, pushing consumers towards online shops during the past year.
Dr Martens sales rose 18% to 318.2 million pounds in the six months ended on September 30, while gross profit increased 20%. The retailer gets about 20% of its sales from e-commerce, up from just 7% in 2015.
Others taking advantage of the pandemic-fuelled online shopping boom include Poland’s
InPost SA, which operates automated parcel lockers for online deliveries and soared in its Amsterdam trading debut, while virtual greeting-card company Moonpig Group Plc and used-car platform Auto1 Group SE are taking investor orders for public offerings.