Birkenstock IPO: Premium Sandal Maker Prices Its US IPO at $46

German premium sandals manufacturer Birkenstock Holding (NYSE: BIRK) has successfully priced its initial public offering (IPO) in the United States at $46 per share, marking the midpoint of the indicated price range, the company announced on Tuesday.

Despite having robust demand that could have allowed them to price the shares at the upper end of the suggested range, Birkenstock and its underwriters opted for a conservative pricing strategy due to market volatility, as revealed by individuals with knowledge of the matter.

The IPO has generated approximately $1.48 billion in proceeds, based on the sale of 32.3 million shares, and places the company's valuation at around $9.3 billion on a fully diluted basis.

Birkenstock is the fourth significant company to launch a U.S. IPO within the last four weeks, following the likes of chip designer Arm Holdings, grocery delivery app Instacart, and marketing automation platform Klaviyo.

The recent increase in listings had briefly raised expectations for a widespread recovery in equity capital markets after an almost 18-month drought. However, the three newly listed firms saw most of their share price gains diminish in the days following their IPOs, leading to concerns regarding the short-term outlook for new stock market debuts.

While shares of Arm and Klaviyo still trade above their IPO prices, the value of Instacart's stock is now below its initial offering price.

Birkenstock, which has a rich history dating back to its founding in 1774 in the German village of Langen-Bergheim by Johannes Birkenstock and his younger brother Johann Adam Birkenstock, both skilled shoemakers, has been making efforts to position itself as a trendy item preferred by models and celebrities.

In a recent film, the character Barbie, portrayed by Margot Robbie, donned a pink pair of Birkenstocks in the final scene.

In 2021, L Catterton, the private equity group supported by French billionaire Bernard Arnault and the luxury goods conglomerate Louis Vuitton Moet Hennessy, acquired a majority stake in Birkenstock.

In 2021, L Catterton, the private equity group supported by French billionaire Bernard Arnault and the luxury goods conglomerate Louis Vuitton Moet Hennessy, acquired a majority stake in Birkenstock.

Following the IPO, L Catterton will retain an 82.8% stake in Birkenstock and possess the majority of the combined voting power of its outstanding shares. Birkenstock's shares will begin trading on Wednesday on the New York Stock Exchange (NYSE) under the ticker “BIRK.”