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Birkenstock Seeks $9.2 Billion Valuation in Upcoming New York IPO
Editor
Published Oct 02, 2023 12:37PM ET
© Reuters.
German premium footwear brand Birkenstock, supported by private-equity firm L Catterton, announced on Monday its pursuit of a valuation of up to $9.2 billion in its forthcoming initial public offering (IPO) on the New York Stock Exchange. The company and its selling stockholders aim to raise $1.58 billion by offering about 32.26 million shares, priced between $44 and $49 each, according to recent filings with the U.S. Securities and Exchange Commission.
Despite mixed outcomes from several newly listed companies in September, Birkenstock is proceeding with its flotation, signaling a potential resurgence in IPO activity after a period of stagnation. The U.S. securities regulator, now sufficiently staffed following the avoidance of a government shutdown, is prepared to review more IPO filings.
However, Susannah Streeter, head of money and markets at Hargreaves Lansdown, cautioned that investor sentiment remains fragile due to persistent high-interest rates. Consequently, despite its ambitious valuation, Birkenstock may settle for a mid or lower price range for its shares.
Birkenstock has selected the ticker symbol 'BIRK' for its listing on the New York Stock Exchange. Financière Agache, controlled by the Arnault family which owns LVMH, expressed interest in purchasing $325 million of ordinary shares in the offering. Additionally, funds managed by Durable Capital Partners LP and Norges Bank Investment Management have indicated interest in jointly buying shares worth $300 million.
Historically known for comfort over fashion, Birkenstock has recently gained traction among fashion enthusiasts, particularly after one of its brands featured in the blockbuster movie "Barbie," worn by lead actress Margot Robbie.
The sixth-generation family-owned business originated in 1774 and manufactures most of its products in facilities across Germany. Last month, Birkenstock reported a 21% revenue increase in the nine months ending June 30, demonstrating resilience in a challenging demand environment for luxury goods as consumers grapple with inflation.
Goldman Sachs, J.P. Morgan, and Morgan Stanley have been enlisted as underwriters for the IPO.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
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