Roger Federer: On the IPO rinses millions in cash register

The most important things in brief

Tennis ace Federer invested around 50 million francs in the Swiss company On in 2019, the "Handelzeitung" estimated at the time. However, he does not appear in the company's stock market records. Consequently, his investment is less than five percent. With yesterday's IPO, the maestro could still have earned up to 300 million francs, it is speculated.

Roger Federer makes a profit

However, it is difficult to estimate how large Federer's effective profit is. That's what Maximilian Müller, Head of Business Administration at the ZHAW, says. From a financial point of view, however, Federer is sure to make a profit – depending on how much he has invested.

Patrik Schwendimann, stock analyst at Zürcher Kantonalbank, warns of "signs of overheating". Be careful with the current share price. The rise of 46 percent within one day to $35 per share will certainly be followed by a stronger price correction.

US capital market harbors risks

In the long term, the IPO in America could also have disadvantages, Schwendimann estimates. On the Swiss stock exchange, the company could have joined a prominent selection of successful international Swiss consumer goods groups. In the large American capital market, however, there is now the possibility that On will only receive attention for a short time.

Do you like the On sports shoes?

Although On is only just making a profit, the IPO is the right step, according to Schwendimann. The company can ride the current wave of the sports shoe boom. In the future, it will be crucial that On can continue the success story with strong sales and profit growth.