When was the last time you seriously thought about investing in a Swiss shoemaker? Probably never, but there’s a unique opportunity here as On Holding (NYSE:ONON) is no ordinary sneaker manufacturer and ONON stock is a fast mover.

The company’s initial public offering (IPO) just recently took place, and InvestorPlace contributor Brenden Rearick opined that this “could be one of the biggest public offerings of the year.”

That caught my attention immediately, so I had to dig deeper and get the scoop. Immediately, I noticed the explosive price action of ONON stock – and the rather high valuation, which might bother some investors.

On the other hand, On Holding’s ambitious expansion plans make the company intriguing. At the same time, the backing of a high-profile tennis champion should spark the trading community’s interest.

A Closer Look at ONON Stock

When I say that this is a recent IPO, I’m not joking. On Holding’s first day of trading on the New York Stock Exchange took place on Sept. 15, and the share price moved with lightning speed.

The company had priced its IPO at $24, above the expected $20 to $22 range. Yet, ONON stock soared 46% to reach $35 during its first public trading session.

Continuing the upward momentum, the stock even reached a high of $40.80 the next day. However, this was followed by a cooling-off period.

As of Sept. 23, ONON stock was drifting near the $37 level. Things seem to be calming down – but then, the stock’s valuation is still running hot.

Here’s what I mean. On Holding’s trailing 12-month price-to-earnings ratio is a whopping 1,228.50. For value-focused investors, that number might be hard to accept.

Clearly, the company is going to have to sell a whole lot of running shoes to justify that P/E ratio.

However, maybe we can find reasons to believe that ONON stock deserves to be trading at what appears to be a high price.

Those Shoes Aren’t Cheap

Speaking of high prices, On Holding makes it crystal clear that the company’s shoes aren’t designed for bargain hunters.

Moreover, co-founder Co-Chief Executive Marc Maurer doesn’t shy away from branding On Holding as a premium product provider.

He stated that the company’s lowest price point is $130. “We have the opportunity to grow with that premium price point,” the company claimed in a prospectus.

The target market here, apparently, is smaller shops that sell high-ticket items.

“The majority of our wholesale partners are premium specialty stores that operate less than five retail stores and play an important role in establishing and reinforcing On’s credibility in their respective communities,” the company clarified.

This strategy seems to be working, so far. “We are fortunate to have already gone out to 60 countries,” Maurer boasted.

Fed Brings Cred

Don’t get the wrong idea. While On Holding is an international business, 49% of the company’s sales in 2020 were in the U.S. (another 44% were in Europe).

Still, the company plans to broaden its geographic horizons. Maurer described the company’s IPO as a “stepping stone” to further growth, and On Holding is currently eyeing international expansion.

If anything could help the company in that effort, it would be the backing of a tennis superstar. Wouldn’t you agree?

Roger Federer, who has 20 Grand Slam titles to his name, certainly fits the bill. He invested an undisclosed sum of money in On Holding in 2019.

We can only assume that the highly successful IPO only made Federer richer than he already was.

In any case, Federer has great respect in the tennis community, and among sports fans in general.

Since his name is associated with On Holding, this is effectively a seal of approval which could raise more interest in ONON stock.

The Bottom Line

It’s always risky to invest in recent IPOs. There simply isn’t much of a share-price history to research.

Nonetheless, ONON stock could be worthy of a moderately sized investment.

Value hunters won’t necessarily be enthusiastic about On Holding.

Yet, the company’s ambitious global expansion plans and Federer’s evident approval should spur some excitement over this footwear up-and-comer.

On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.