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10/25/2021

Allbirds targets $2 billion-plus valuation in IPO

Marianne Wilson
Editor-in-Chief
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Allbirds
Allbirds recently opened its 32nd store, in Cambridge, Mass.

Allbirds has high hopes for its initial public offering.

The sustainable footwear brand is targeting a valuation of as much as $2.2 billion in its IPO, according to its updated registration statement with the Securities and Exchange Commission. Allbirds is offering 19.2 million shares at a projected price range between $12 and $14 each. At the top end of that range, the offering would raise about $269 million. The company, which has not yet set the date for its IPO, plans to list on the New York Stock Exchange under the ticker symbol “BIRD.”

Allbirds filed for IPO at the end of August. The filing revealed that the company, founded online in 2015, has been losing money since its founding and expects to “continue to incur losses for the foreseeable future.” Allbirds’ net loss totaled $14.5 million in 2019, growing to $25.9 million in 2020. For the six-month period ended June 30, Allbirds reported a loss of $21.1 million.

According to the new filing, Allbirds’ revenue in the third quarter ended September 30 is expected to rise 32% to $62.5 million amid higher sales at its physical stores. The loss for the quarter is expected to range between $15 million to $18 million in the quarter, from nearly $7 million a year earlier due to higher expenses.

As of Oct. 15, Allbirds operated 32 stores globally. The company plans to accelerate its expansion in the future, stating in its filing that “we are in the early phase of a ramp towards hundreds of potential locations in the future.”

In going public, Allbirds is following the path of other former digitally native companies entering the public arena, including Warby Parker and Rent the Runway, which is targeting a valuation of up to $1.5 billion