Birkenstock Holding, a renowned German footwear company known for its premium products, has set the price for its initial public offering (IPO) in the U.S. market at $46 per share. This pricing falls within the middle of the range that was initially indicated by the company. Birkenstock’s conservative approach to pricing reflects its careful approach to entering the U.S. market through its IPO debut.

The IPO has successfully raised approximately $1.48 billion through the sale of 32.3 million shares. This valuation places the total worth of Birkenstock at around $9.3 billion on a fully diluted basis. Birkenstock is now the fourth major company in the last four weeks to launch an IPO in the U.S., following Arm Holdings, Instacart, and Klaviyo.

These recent IPO listings have sparked hopes for a broader recovery in equity capital markets, which have experienced a dry spell for nearly 18 months. However, it is worth noting that the three companies mentioned above faced a decline in their share prices shortly after their IPOs. This has raised concerns about the short-term outlook for new stock market launches.

While both Arm and Klaviyo are still trading above their IPO prices, Instacart’s stock is currently valued lower than its IPO value. As for Birkenstock, the company has been making efforts to position itself as a trendy item worn by models and celebrities. The brand gained significant recognition when Margot Robbie’s character in a recent film was seen sporting a pink pair of Birkenstock sandals in the final scene.

In 2021, Birkenstock received a majority stake acquisition from L Catterton, a private equity group backed by French billionaire Bernard Arnault and the luxury goods empire Louis Vuitton Moet Hennessy. After the IPO, L Catterton will hold an 82.8% stake in Birkenstock and will have control over the majority of the combined voting power of its outstanding shares.

Birkenstock’s shares will start trading on the New York Stock Exchange under the ticker symbol “BIRK” on Wednesday. The IPO is underwritten by top financial institutions such as Goldman Sachs, JPMorgan Chase, and Morgan Stanley.

The initial pricing details of Birkenstock’s IPO were first reported by the Wall Street Journal earlier on Tuesday. The cautious pricing strategy adopted by Birkenstock indicates that the company is taking calculated steps to ensure a successful entry into the U.S. stock market.

Useful links:
Wall Street Journal: German Sandalmaker Birkenstock to List in U.S. in $1.6 Billion Deal
NYSE: NYSE Welcomes Birkenstock Holding SE & Co. KGaA Through Its IPO