Dr Martens raises €1.5bn

The classic boot brand attracted bumper demand at its London IPO, valuing the company at more than €4bn

Dr Martens' IPO values the bootmaker at more than €4bn

Classic boot brand Dr Martens kicked off its London IPO in style, attracting bumper demand in a sale valuing the company at more than €4bn that is likely to spur other British companies to follow suit.

Dr Martens’ shares were up 16% in their market debut after the company priced the deal at the top of an indicative range at 370 pence, raising nearly £1.3bn (€1.5bn) and giving it a market capitalisation of £3.7bn.

Dr Martens, known for its chunky boots with yellow stitching, is the first of several British IPO candidates to hit the market, as issuers look to make up for 2020, when Covid wreaked havoc on economies and dented stock market listing volumes in Europe.

The IPO also marks a major win for Dr Martens majority owner, private equity firm Permira, which bought the company in 2014 for €380m.

The offer was eight times oversubscribed.

“This is a brand business not a retail business and it is very global – it’s not a UK high-street name so the impact of Brexit and Covid is far less,” a source said.

One investor who bought into the IPO said Dr Martens' longstanding presence in the market since the 1960s was an attractive factor, but the valuation suggested by the share price boost was “punchy”.

“Now they have to improve the presence and the penetration in emerging markets, especially China, to justify that,” they said.

• Reuters