Birkenstock Holding, the renowned German footwear company, has opted for a prudent pricing strategy for its U.S. Initial Public Offering (IPO). The company announced on Tuesday that it would price its IPO at $46 per share, positioning it squarely in the middle of its proposed price range. This decision is aimed at raising approximately $1.48 billion by selling 32.3 million shares and valuing the company at around $9.3 billion on a fully diluted basis.
Birkenstock is the fourth major company to launch a U.S. IPO in the past four weeks, following prominent listings such as chip designer Arm Holdings, grocery delivery app Instacart, and marketing automation platform Klaviyo. While these recent IPOs initially raised hopes of a broader market recovery, it’s important to note that the share price gains made by these three newly listed companies eroded significantly in the days following their IPOs, raising concerns about the short-term prospects for new entrants in the stock market.
However, Birkenstock’s IPO carries a unique appeal. Founded in 1774 by Johannes Birkenstock and his brother Johann Adam Birkenstock, the brand boasts a rich history and remained under the ownership of the Birkenstock family for six generations. In recent years, Birkenstock has successfully rebranded itself as a fashionable choice favored by models and celebrities. Notably, Margot Robbie wore a pair of pink Birkenstocks in the final scene of a movie released this summer, further enhancing the brand’s image.
Adding to its allure, private equity group L Catterton, backed by French billionaire Bernard Arnault and luxury conglomerate Louis Vuitton Moet Hennessy, acquired a majority stake in Birkenstock in 2021. Following the IPO, L Catterton will retain an 82.8% stake in Birkenstock and maintain a significant portion of the combined voting power of its outstanding shares.
Birkenstock’s shares are set to commence trading on the New York Stock Exchange under the ticker symbol «BIRK» starting on Wednesday. The underwriting team for this IPO is led by Goldman Sachs, JPMorgan Chase, and Morgan Stanley.
The Wall Street Journal previously reported Birkenstock’s IPO pricing earlier on Tuesday.
