In an underwhelming initial public offering (IPO) debut, Birkenstock Holding Plc’s shares began trading 11% below the price set in the company’s $1.48 billion IPO, a development that may impact the ongoing trend in US listings.

This German sandal manufacturer’s IPO debut marks the weakest opening for a listing of $1 billion or more in New York in over two years, according to data compiled by Bloomberg. Out of more than 300 US IPOs of similar magnitude over the last century, only nine have encountered a more challenging debut. The most recent instance was AppLovin Corp., which opened 12.5% below its IPO price in April 2021, as indicated by the data.

In a notable test of the US market, Birkenstock’s shares commenced trading at $41 per share after being priced at $46 in the IPO. Interestingly, the offering itself was priced below the midpoint of the initially marketed range, set at $44 to $49. Approximately 32 million shares were sold by Birkenstock and its private equity owner, L Catterton.

As of 1:35 p.m. in New York, the shares were trading at $41.35, giving the company a market value of $7.76 billion. When considering shares reserved for executives, directors, and employees, the company’s diluted value is closer to $8.4 billion.

In the IPO, the company sold 10.8 million shares, while L Catterton offered 21.5 million. L Catterton and its affiliates will retain approximately 83% of the stock, maintaining control of the company, according to filings with the US Securities and Exchange Commission.

The IPO was led by Goldman Sachs Group Inc., JPMorgan Chase & Co., and Morgan Stanley. Birkenstock’s shares are now traded on the New York Stock Exchange under the symbol BIRK.

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