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Allbirds IPO

How to trade on Allbirds shares

Eco-friendly shoemaker Allbirds, which is based in San Francisco, is planning to debut on the stock market on 3 November 2021. The company has become a leader in sustainable footwear, in terms of revenue and market presence, and will have to adhere to certain environmental, social and governance standards. Learn how to get alerted to when Allbirds’ IPO goes live and find out more about the company’s financials and estimated valuation.

UK flag logo
FCA regulated
FSCS logo
Segregated funds
LSE logo
LSE listed

3 November 2021

Allbirds' IPO date

$2bn+

Allbirds' valuation

Between $12 and $14

Allbirds' share price

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What does Allbirds do?

Allbirds is a US-New Zealand company that was founded in 2016 and designs eco-friendly footwear and apparel. It has retail stores in multiple countries around the world, including the US, UK, China, New Zealand, France, Japan and Korea. The company is a certified B corporation of social and environmental performance, designing shoes using superfine Merino wool and eucalyptus tree fibre. Allbirds’ staple product is its Wool Runner trainers, which were named as ‘the world’s most comfortable shoes’ by Time Magazine in 2016.

Allbirds operates a direct-to-consumer (DTC) business model, which is rather unique to the ecommerce industry. Until recently, the most common business model has been for brands to sell their products wholesale to retailers, such as Kroger and Nordstrom, which will then re-sell them to consumers. Many new brands now choose to sell their own products to consumers via ecommerce sites as they can avoid the low margins of a wholesale selling model, and this may offer a cheaper interaction. According to The Drum, DTC is projected to grow by over 19% in 2021 alone.

When is Allbirds’ IPO date?

The company will be listing on the Nasdaq exchange on 3 November 2021 using the ticker 'BIRD'. Allbirds initially filed its S-1 registration with the Securities and Exchange Commission (SEC) in August in preparation for an initial public offering.

Stay up to date with upcoming IPOs and sign up below to receive an email when Allbirds’ stock is available to trade on our Next Generation platform.

Allbirds’ potential share price and valuation

Allbirds will offer over 143 million shares that are priced between $12 and $14 apiece.

With a valuation of over $1bn, it hit “unicorn status” at the end of 2018, with a more accurate valuation estimate of around $1.7bn in 2021.

Allbirds has raised over $200m in total funds, according to Crunchbase. The most recent was over $100m in September 2020, in a funding round that saw investments from Franklin Templeton, T. Rowe Price and Baillie Gifford.

How to trade on Allbirds’ IPO

1. Open an account

Our product library offers over 9,000 to trade on, which will include Allbirds stock when it is available.

2. Pick a strategy

Choose whether you want to go long (buy) or go short (sell). Please note that some trading restrictions may apply on initial trading.

3. Keep an eye out for market news

After creating an account, enable notifications on your mobile device so that you don’t miss a story about Allbirds.

4. Place stop-loss orders

These risk-management tools can help to close you out of positions at a specified price if the market moves against you, which can reduce losses.

How is Allbirds performing financially?

2020 was Allbirds’ top performing year to date, according to Forbes, as the company reported an annual revenue of $219m with a net loss of $26m.

It also opened its first 27 brick-and-mortar stores in order to improve customer acquisition costs. The company is hoping that this figure may increase to hundreds in the future, as they’ve noted “increased brand awareness and web traffic”. However, this has been hurt by the pandemic, as in-person sales fell by 17% from 2019 to 2020, due to lockdown measures forcing stores to close.

The company’s products have become popular among tech workers in Silicon Valley, according to Financial Times, which caused digital sales to grow by 74% between 2018 and 2020. Earnings before tax also grew from $1.3m in 2019 to $15.4m in 2020, although the company has yet to make a profit.

Please remember that past performance is not an indicator of future results.

Why may investors be interested in Allbirds?

According to MediaRadar, Allbirds has spent the most out of all DTC apparel and footwear brands on marketing in 2021, across digital, TV and print, in order to increase awareness of the brand. This may help its market presence and share to soar.

The company is part of the growing sustainable sector. As society becomes more conscious of the environment each day, investors may be looking for eco-friendly and sustainable brands to back. In fact, a study by McKinsey showed that environmental impact and brand trust are increasingly important factors for Gen Z and millennial consumers.

As a result of the Covid-19 pandemic, there is a more casual approach to work attire, meaning that trainers and activewear (which the company is also planning to launch) are becoming more acceptable in offices. This has helped to boost sales of Allbirds products throughout 2020 and this pattern is expected to continue as we come out of the crisis.

Potential risks of Allbirds’ IPO

In order to go public, Allbirds must adhere to certain criteria, which includes maintaining a minimum ESG rating, implementing best practises towards climate change, and making commitments to progress on ESG matters. Although this is part of the company’s business model, it may still be a challenging demand to meet.

The company hasn’t yet made an annual profit and Allbirds has said that it expects to make losses for the foreseeable future. This isn’t unusual, given that the company is a relatively recent start-up, but it may turn off some investors that are looking for companies with more steady and positive financials.

Allbirds currently retails its shoes for around $100-$150 per pair. This is a fairly steep price, considering that it faces competition from well-established brands such as Adidas and Nike. However, it is one of the most recognised sustainable brands, which may make consumers more willing to spend money on a product that offers change for the environment.

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Who are Allbirds’ competitors?

Allbirds’ products, namely their wool sneakers, are manufactured using sustainable materials and the company claims that its carbon impact is around 30% less than its competitors. In fact, its supply chain is reported to have been carbon neutral since 2019, according to Financial Times. However, this doesn’t take into account shipping and transportation of the materials.

Some of Allbirds’ main competitors include the above stocks, which are all available to trade on our Next Generation trading platform. Brands or companies that offer a similar product offering to Allbirds (and therefore the highest level of competition) but aren’t yet available to trade include Rothy’s, Atoms, Giesswein, Suavs, Cariuma and Baabuk.

FAQ

Is Allbirds profitable?

Allbirds hasn’t yet recorded a profitable year, but given that it’s a start-up company, it could be considered a growth stock, as 2020 saw its highest revenues yet and sales have grown by 75% in the past two years. Therefore, this may an upcoming IPO to watch, but remember that past performance is not an indicator of future results.

How can I get involved in Allbirds’ IPO?

To get involved in Allbirds’ IPO, open a trading account. You can set-up trading alerts so that when Allbirds shares are available to trade on our platform, you will receive a notification. Then, choose a trading strategy based on whether you think its share price will rise or fall.

Who are the underwriters for Allbirds’ IPO?

Allbirds is said to be working with investment banks such as JP Morgan Chase, Morgan Stanley, and Bank of America, for its initial public offering​. This could take place in Autumn 2021.

Disclaimer: CMC Markets is an execution-only service provider. The material (whether or not it states any opinions) is for general information purposes only, and does not take into account your personal circumstances or objectives. Nothing in this material is (or should be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by CMC Markets or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although we are not specifically prevented from dealing before providing this material, we do not seek to take advantage of the material prior to its dissemination.

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