Dr Martens PLC (LON:DOCS) said its initial public offer was eight times oversubscribed and that it will have a market value of roughly £3.7bn.
An IPO offer price for the shoe maker and retailer’s shares was set at 370p apiece as they began conditional trading in London this morning and ahead of full trading beginning next Wednesday.
A valuation of £1bn had been mooted a year ago when talks were being held about a potential sale to US private equity firm Carlyle Group, with Permira also thought to be mulling a US float.
Dr Martens major shareholder, UK private equity giant Permira, and other current shareholders are selling a combined 350mln shares, equating to a total offer size of just under £1.3bn, or 35% its 1bn share total share capital at admission.
With the offer oversubscribed, it looks like an over-allotment option of a further 52.5mln shares will be made available by Permira, which would increase the number of shares in public hands to 403mln or 40.3% of the total.
Kenny Wilson, chief executive of Dr Martens, said: “We have been delighted by the strong levels of interest, engagement and support from such a high quality selection of institutional investors.
“The successful transformation of Dr Martens is a great story, and what is even more exciting is the huge potential ahead. We are proud to take our place as a London listed company, both delivering as a successful plc and more importantly continuing to grow our brand around the world.”
Permira will be subject to a 180-day lock-up arrangement from the date of admission, while directors, current management and employee shareholders and certain former executives will be subject to a 365 day lock-up.
At its initial market size, the company would find itself in the upper echelons of the FTSE 250 index.