* IPO prices at 370 p/share, raising nearly 1.3 bln stg
* Offer oversubscribed by eight times
* Shares up 19% in early deals
(Adds quotes, updates share price)
By Simon Jessop and Abhinav Ramnarayan
LONDON, Jan 29 (Reuters) - Classic boot brand Dr. Martens
kicked off its London IPO in style on Friday,
attracting bumper demand in a sale valuing the company at more
than $5 billion 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 1.3 billion pounds and giving it a
market capitalisation of 3.7 billion pounds ($5.07 billion).
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-19
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 380 million euros ($460.10 million).
"We have been delighted by the strong levels of interest,
engagement and support from such a high quality selection of
institutional investors," said Dr Martens Chief Executive Kenny
Wilson.
The offer was eight times oversubscribed, the company said
in a statement.
"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 familiar with the
transaction said.
One investor who bought into the IPO said that Dr Martens
longstanding presence in the market since 1960s was an
attractive factor but the valuation suggested by Friday's share
price boost was "punchy".
"Now they have to improve the presence and the penetration
in emerging markets, especially China, to justify that," she
added.
Dr Martens' listing follows that of Polish locker business
InPost, which listed in Amsterdam on Wednesday with a
valuation of 9.5 billion euros ($11.50 billion) and jumped 20%
on its debut.
In Britain, e-card retailer Moonpig is also planning a
London IPO, while others such as Deliveroo and Darktrace are
expected to announce listing plans later in the year.
The rapid spread of a new coronavirus variant is expected to
hit economies in Britain and beyond, but the stock market has
remained resilient and demand for tech and growth firms remains
strong.
Goldman Sachs and Morgan Stanley were joint
global co-ordinators for Dr Martens IPO, and Barclays,
HSBC, Bank of America and RBC Europe were joint
bookrunners. Lazard was financial adviser.
($1 = 0.8259 euros)
($1 = 0.7300 pounds)
(Additional reporting by Julien Ponthus. Editing by Jane
Merriman)
HSBC Holdings (HSBA)
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