Birkenstock models are lined up in the shoe manufacturer’s retail stores. The company plans to go public in New York.
Sebastian Christoph Gornau Picture Alliance | Getty Images
Birkenstock is a long-established German shoe brand known for its comfortable and durable style. The IPO price was $46 per share. The company’s preliminary valuation announced Tuesday was approximately $8.64 billion.
This pricing was just short of the midpoint of Birkenstock’s $44 to $49 per share range, and the market capitalization was higher than that. crocs Match with Swiss shoe brand Running.
Birkenstock had originally sought a valuation of up to $9.2 billion.
The company initially plans to sell approximately 10.75 million shares of its common stock in the offering, which could raise approximately $495 million when it begins trading on the New York Stock Exchange under the ticker “BIRK.”
Combined with the 21.51 million shares that the selling shareholders were considering selling, the offering could result in a profit of approximately $1.48 billion.
Birkenstock’s offer comes as the IPO market remains volatile after many recently listed companies began trading with subdued debuts.
instacart Last month, it priced its long-awaited IPO at $30 per share. However, after initially rising 40% on the Nasdaq market, the stock closed at $33.70 on the first day of trading and is currently trading below its opening price.A similar trend can be seen after the Johnson & Johnson spin-off. Kenview beauty & wellness company Oddity Tech.
Birkenstock, which has been in the shoe business since 1774, goes public about two years after private equity firm L. Catterton acquired a majority stake in the business at a valuation of $4.85 billion. The company decided to go public in order to improve its valuation and gain access to capital markets, and plans to use the proceeds from the offering to repay loans, according to a securities filing.
Even as the footwear sector faces pressure from a slowdown in consumer spending and a shift toward services rather than goods, investors are praising the company’s growth and growing relevance after a recent cameo in the Barbie movie. is attracting attention.
From 2020 to 2022, sales rose to €728 million ($771 million) as the company pivoted to a direct-to-consumer strategy, exited some wholesale partnerships in key markets, and increased product sales. ) to €1.24 billion ($1.32 billion). higher price range.
In fiscal 2022, the company posted a net profit of approximately 187 million euros ($198 million).
