Allbirds has increased the size of its initial public offering and its debut share price, offering more than 20 million shares at $15 each, which would raise more than $300 million. This values the company at roughly $2.16 billion.
The expectation had been that the company would sell 15.4 million shares at $12 to $14.
More than 16 million shares are being sold by Allbirds and 3.8 million shares are being sold by certain of the company’s existing stockholders.
Late Tuesday, the San Francisco-based sustainable footwear brand priced its shares, which are expected to begin trading on the Nasdaq exchange today under the ticker symbol Bird. The closing of the offering is expected to occur on Friday, subject to satisfaction of customary closing conditions.
Morgan Stanley, J.P. Morgan and BofA Securities are acting as lead book-running managers for the offering. Baird, William Blair, Piper Sandler, Cowen, Guggenheim Securities, KeyBanc Capital Markets, Stifel, Telsey Advisory Group, C.L. King & Associates, Drexel Hamilton, Loop Capital Markets, Penserra Securities LLC, Ramirez & Co. Inc. and Siebert Williams Shank are acting as co-managers for the offering.
The shoemaker is a B-Corp, which means its board is legally bound to balance profit and purpose and publicly share an impact report on how it’s improving society or the environment.
Allbirds’ biggest investors include affiliates of Maveron, Tiger Global, T. Rowe Price, Fidelity and Lerer Hippeau Ventures, the filings show.
At the time of the registration statement, the company said: “The principal purposes of this offering are to increase our capitalization and financial flexibility and create a public market for our Class A common stock.” It added that: “we cannot specify with certainty all of the particular uses for the net proceeds we receive from this offering. However, we currently intend to use the net proceeds we receive from this offering for general corporate purposes.”
Allbirds is a lifestyle brand that uses naturally derived materials to make sustainable footwear and apparel. It started by using superfine New Zealand merino wool and has since evolved to include a eucalyptus tree fiber knit fabric and a sugarcane-based EVA foam. Allbirds now has a presence in 35 countries and operates 35 stores as well as an e-commerce site.