Birkenstock Prices US IPO at $46 Per Share
German Footwear Maker Sets Conservative Pricing Despite Strong Demand
German premium footwear manufacturer Birkenstock Holding has announced the pricing of its US initial public offering (IPO) at $46 per share, which falls within the middle of its indicated price range. This decision to price the offering conservatively was made in light of market volatility, despite having sufficient demand to price the share sale at the top end of the range, according to insiders.
A Successful IPO with a Fully Diluted Value of $9.3 Billion
The IPO has raised approximately $1.48 billion based on the sale of 32.3 million shares, resulting in a fully diluted valuation of about $9.3 billion for Birkenstock. This successful IPO positions Birkenstock as the fourth major company to launch a US IPO in the last month, following the footsteps of Arm Holdings, Instacart, and Klaviyo.
Market Volatility Raises Concerns for New Stock Market Launches
Although the recent listings of Arm and Klaviyo still trade above their IPO prices, Instacart’s stock is currently valued lower than its IPO price. This trend has raised concerns over the near-term outlook for new stock market launches, despite the initial hope of a broad recovery in equity capital markets.
Birkenstock: A 250-Year-Old Footwear Brand
Birkenstock, founded in 1774 by Johannes Birkenstock and his brother Johann Adam Birkenstock, has been a family-run business for six generations. Over the years, the brand has sought to position itself as a fashionable item worn by models and celebrities, gaining popularity for its comfortable and stylish footwear.
Majority Stake Acquired by L Catterton
Earlier this year, L Catterton, a private equity group backed by French billionaire Bernard Arnault and luxury goods empire Louis Vuitton Moet Hennessy, acquired a majority stake in Birkenstock. Post-IPO, L Catterton will hold an 82.8% stake in Birkenstock and maintain control of the majority of the combined voting power of its outstanding shares.
Trading Begins on the New York Stock Exchange
Birkenstock’s shares are set to commence trading on the New York Stock Exchange under the ticker symbol “BIRK” starting Wednesday. Leading underwriters for the IPO include Goldman Sachs, JPMorgan Chase, and Morgan Stanley.
With the successful pricing of its US IPO, Birkenstock aims to leverage its newfound capital to further expand its global presence and strengthen its position as a leading premium footwear brand.
