New Zealand-founded shoe maker Allbirds has had a strong debut on the US Nasdaq technology dominated stock exchange.
Former US president Barack Obama, celebrities such as Leonardo diCaprio, and Silicon Valley entrepreneurs are among the fans of the woollen shoes made by Allbirds. Photo: Supplied
Shares in the maker of casual wool shoes surged more than 80 percent on the issue price of $US15 each, hitting a high of $US27.55, and valuing the company at close to $US4 billion.
The San Francisco based-company was founded by former All Whites and Phoenix footballer Tim Brown and makes shoes from merino wool, plant based products, and recycled materials.
The company has made much of its sustainable manufacturing and lower carbon footprint, and gained considerable exposure from being bought by high profile sports people, former US president Barack Obama, celebrities such as Leonardo diCaprio, and Silicon Valley entrepreneurs.
"We believe that there's an opportunity to unlock growth and financial opportunity for a business by also having very good impact on the environment," said Joseph Zwillinger, co-chief executive officer.
The company is a B-Corp, which makes it legally bound to balance profit and purpose and publicly share an impact report on how it is improving society or the environment.
It had revenue of about $US220 million last year, most from online sales, although it had a loss $US26m and has forecast losses for "the foreseeable future".
Brown founded the company in 2016 in partnership with a US technology entrepreneur and got backing from the New Zealand wool industry through a grant.
It has recently branched out into sports clothing with leggings, tops and T-shirts made from merino wool and eucalyptus fibre.
Allbirds has joined Rocket Lab as the second New Zealand founded company on a major US stock exchange.
Hatch chief executive Kristen Lunman said more than $US3 million was invested through the local online sharetrading site.
A few thousand investors got in on the initial pubic offering (IPO) price.
"Historically IPOs have been reserved for big institutional investors - think the likes of Warren Buffett - and for the first time in New Zealand, retail investors were able to access a fantastic US IPO opportunity through Hatch.
"We had a few thousand people that were able to take that up at $15 share price and are probably feeling pretty good about their decisions at the moment."