Allbirds plan world’s first sustainable IPO
Allbirds is preparing itself to float the world’s first “sustainable” initial public offering (IPO).
The green footwear brand’s moniker requires the company to make sure it maintains its environmental, social and governance promises (ESG).
The shoe manufacturer is listing the stock in such a way that means that the company can be held accountable to maintaining its ESG rating, implementing green practises and making “commitments to make meaningful progress on important ESG matters”, according to a regulatory filing.
“We hope to help pioneer a framework for companies to conduct what we are calling a sustainable public equity offering.
“Our vision is that Allbirds’ initial public offering will lay the groundwork that can be used by other companies for future SPOs,” the filing read.
Allbirds claims is supply chain has been carbon neutral since 2019 and its trainers are made with sustainably sourced natural materials. Today, through our use of renewable, natural materials and responsible manufacturing, the average pair of Allbirds shoes has a carbon footprint that is 30 percent less than our estimated carbon footprint for a standard pair of sneakers, and we offset the entirety of the rest to provide our customers with carbon-neutral products,” the documents continued.
The company believes that it will be able to impact the wider fashion industry with its sustainable tech and hopes that other brands follow suit.
The IPO is being led by Morgan Stanley, JPMorgan Chase & Co. and Bank of America Corp.
In 2020, Allbirds raised $100 million in a Series E funding round, reportedly valuing the business at $1.7 billion. It was founded by co-CEOs Joseph Zwillinger and Timothy Brown in 2015, and sold its first pair of shoes a year later. Allbirds has lost money since it was founded in 2015 and it expects to continue to run at a loss in the foreseeable future. Allbirds recorded a net loss of $40.4 million between 2019 and 2020. The brand’s online sales revenues grew 74 per cent from $126 million in 2018 to $219.3 million last year, with Digital sales making up 89 per cent of all sales.
The company had 27 stores as of June 30, and it plans to make a much bigger push into bricks and mortar in the future. Allbirds said it is in the “early phase of a ramp towards hundreds of potential locations.”
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