Sustainable shoe brand Allbirds’ shares surged 90 per cent in its first day on the NASDAQ, giving it an approximate valuation of $4.1 billion, according to CNBC.
The business raised $303 million in its IPO, selling off 20.2 million shares at a price of $15 each. On its first day, listed under the ticker BIRD, shares traded at $21.21. At the close of trade, shares were up to $28.26 each.
According to CNBC’s report, the business is looking to attract investors that are focused on companies emphasising sustainable manufacturing practices.
“We did get exposure to a lot more pockets of capital as a result of the fact that people saw the genuine and authentic leadership that we’re putting forward on ESG,” co-founder Joey Zwillinger told CNBC.
“I think [the] demand was so great [because] investors were really attracted by the opportunity to put their capital against a great opportunity to create outcomes that were better for the planet.”
Most of Allbirds’ sales are made online, with only a handful of stores around the globe, and although it has been a strong retailer for a number of years it has yet to turn a profit: something the pandemic made even more difficult.
“Before the pandemic, we were already very close to and on the path to breakeven,” Zwillinger said.
“So, this is something well within our sights, and we see a very clear and short-term path or else we wouldn’t be going public.”