Birkenstock IPO: American public issue price fixed at $46 per share
Birkenstock IPO: Sandal company Birkenstock said Tuesday that it had priced its IPO at $46 a share, according to multiple media reports. Despite having enough demand to price the share sale at the top of the indicated range of $44 to $49 per share, Reuters reported. It is due to start trading Wednesday on the New York Stock Exchange under the “BIRK” ticker symbol. Goldman Sachs, JPMorgan Chase and Morgan Stanley are the lead underwriters for the IPO.
According to a report in Bloomberg, at the IPO price, Birkenstock has a market value of $8.64 billion based on its filings with the US Securities and Exchange Commission. Including shares reserved for executives, directors and employees, the company has a diluted value of about $9.33 billion.
Birkenstock plans to use proceeds from the offering to repay debt.
Birkenstock’s IPO will be the fourth to launch in the US in the past month, following Arm Holdings, Klaviyo, and Instacart. There were just 71 IPOs in the US last year, the lowest number since 2009, according to Renaissance Capital. While shares of Arm and Klaviyo still trade above their IPO price, Instacart’s stock is now worth less than its IPO value.
Birkenstock was founded in 1774 in the German village of Langen-Bergheim by Johannes Birkenstock and his younger brother Johann Adam Birkenstock, who were both shoemakers. The Birkenstock family ran the business for six generations after its founding. Headquartered in the picturesque city of Linz am Rhein in western Germany, the company has several manufacturing sites in the country, and around 6,200 employees worldwide.
L Catterton, the private equity group backed by French billionaire Bernard Arnault and luxury goods empire Louis Vuitton Moet Hennessy, acquired a majority stake in Birkenstock in 2021.
After the IPO, L Catterton will hold an 82.8% stake in Birkenstock and control a majority of the combined voting power of its outstanding shares.
-With agency inputs
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Updated: 11 Oct 2023, 07:17 AM IST
