Footwear specialist Dr Martens has become the latest retail brand to confirm its intention to float, with a reported valuation in excess of £3bn.

In a note to the City this morning, the retailer confirmed its intention to float on the London Stock Exchange (LSE) in early February after weeks of speculation. 

Dr Martens said it intended to apply for a premium listing on the LSE and that its final valuation would be determined by a book-building process led by a phalanx of banks, headed up by Morgan Stanley and Goldman Sachs.

Media speculation has placed the final value for the footwear specialist at £3bn or £4bn – 20 times the company’s earnings last financial year and a tenfold return for its private-equity backer, Permira, which paid £300m for Dr Martens seven years ago.

Dr Martens has delivered strong growth during the pandemic so far, with sales in the six months to September 30 up 18% year on year to £318.2m and EBITDA up 30% to £86.3m.

Chair Paul Mason said the proposed listing “marks an important milestone for Dr Martens” following investments in the group’s operations and leadership to “build the business to match the scale and potential of our brand”.

The business, which operates in 60 countries and sells more than 11 million pairs of shoes per year, is banking on the continued growth of its direct-to-consumer channel to build momentum in the coming years.

Dr Martens’ direct-to-consumer division delivered 34% growth in the six months to September 30.