Birkenstock Valued at $8.6B after Pricing IPO $46

Birkenstock Valued at $8.6B after Pricing IPO $46

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by Benjamin Godfrey · 3 min read
Birkenstock Valued at $8.6B after Pricing IPO $46
Photo: Depositphotos

Birkenstock’s IPO marks a significant event in the financial industry, following in the footsteps of Arm Holdings, Klaviyo, and Instacart, despite a challenging IPO market in recent years.

Birkenstock Holding plc, the renowned German maker of high-end sandals with a history dating back to 1774, has priced its Initial Public Offering (IPO) at $46 per share, valuing the brand at a whopping $8.64 billion. While this valuation fell slightly short of its initial expectations of up to $9.2 billion, it still firmly places Birkenstock in the upper echelons of the footwear industry.

The Birkenstock IPO Pricing

On Tuesday, Birkenstock announced the pricing of its IPO, placing its shares squarely within the middle of the expected price range of $44 to $49 per share. The company is set to begin trading on the New York Stock Exchange (NYSE) under the ticker symbol “BIRK,” creating a buzz among investors and fashion enthusiasts alike.

According to reports, Birkenstock’s IPO consists of two segments, with the company selling approximately 10.8 million shares in the offering, which raised roughly $495 million in capital. Additionally, existing shareholders are offering an additional 21.5 million shares, further enhancing the brand’s presence on the public market.

Birkenstock IPO pricing, set within the range of $44 to $49 per share, establishes a market capitalization that sits above the well-known brand Crocs and falls in line with the Swiss shoe brand On Running.

Birkenstock’s plan to go public comes just two years after private equity firm L Catterton purchased a majority ownership in the company for $4.85 billion. Through this decision, Birkenstock aims to increase its valuation and acquire access to capital markets.

This decision to go public is not only a huge financial step for Birkenstock, but it also highlights the brand’s ongoing appeal. Birkenstock has been a trusted name in the footwear market for decades. While it is a brand steeped in history, it has demonstrated a remarkable capacity to stay relevant, most recently enjoying a surge in popularity after appearing in the “Barbie” film.

Birkenstock’s Incredible Journey

Birkenstock’s IPO marks a significant event in the financial industry, following in the footsteps of Arm Holdings Plc (NASDAQ: ARM), Klaviyo Inc (NYSE: KVYO), and Instacart (NASDAQ: CART), despite a challenging IPO market in recent years.

What has driven Birkenstock’s impressive growth is the company’s adaptability. Between fiscal 2020 and 2022, the brand experienced a notable surge in sales, increasing from 728 million Euros ($771 million) to 1.24 billion Euros ($1.32 billion).

This growth is largely attributed to Birkenstock’s strategic shift towards a more direct-to-consumer approach, the careful exit from certain wholesale partnerships in key markets, and an emphasis on selling items with higher price points.

The company’s financial results have been equally impressive. In fiscal 2022, Birkenstock posted a net income of about 187 million Euros ($198 million), a clear indication of its financial health and profitability.

Business News, IPO News, Market News, News
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