Birkenstock Holding Ltd is set to achieve a $10 billion valuation through its U.S. initial public offering (IPO), pricing at the upper end of the indicated range. The German premium footwear company is expected to make the final decision on IPO pricing shortly before its shares begin trading in New York. At the highest price point in the range, Birkenstock anticipates raising $1.58 billion.
This IPO comes amid a recent trend of major companies going public. While some of these firms initially priced their IPOs at or above the indicated range and experienced initial stock price gains, they subsequently saw declines. Despite strong initial investor demand, Birkenstock is cautious about raising its IPO price range.
Birkenstock’s sought-after valuation exceeds that of some larger shoe brands, with a price-to-earnings ratio that surpasses that of Nike Inc. To bolster investor confidence, Birkenstock initiated its IPO roadshow with commitments from several investors, including Financière Agache, Durable Capital Partners LP, and Norges Bank Investment Management.
Birkenstock, a brand with a rich history dating back to 1774, has recently positioned itself as a fashion-forward choice, worn by models and celebrities. Following the IPO, L Catterton will retain an 82.8% stake in Birkenstock and maintain control of the majority of the combined voting power of its outstanding shares.