Dr Martens (DOCS) does not look like the kind of private equity initial public offering that has been rightly criticised in recent years. Yes, the selling shareholders received a punchy price tag for their investment, but the business they were selling looks to have been well-managed, well-invested and is currently doing well.
There are good grounds for thinking that a decent chunk of value has been left on the table for new shareholders instead of getting them to massively overpay for a business that has already peaked.
Management has put together a strong investment case for the shares, but investors have to bear in mind that this is a fashion business and consumer tastes are fickle. There’s no guarantee that what they like today will be more popular in the future. This makes weighing up the shares and valuing them far from easy.