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Germany’s Premium Footwear Brand Birkenstock Eyes $9.2B Valuation in IPO

Birkenstock confidently moves ahead with its IPO plans despite mixed performances of other listings in September. Goldman Sachs, JPMorgan, and Morgan Stanley shall be the underwriters for the IPO. 

Birkenstock, the renowned German premium footwear brand supported by private-equity firm L Catterton, has announced its intention to pursue a highly anticipated initial public offering (IPO) in New York. For its IPO the company is targeting a valuation of up to $9.2 billion.

In this IPO, the company and its selling stockholders intend to offer approximately 32.26 million shares within a price range of $44 to $49 per share. Thus, they are aiming to generate $1.58 billion in capital. Birkenstock disclosed these details in a filing submitted to the US Securities and Exchange Commission.

The Norwegian sovereign fund and Durable Capital Partners LP, led by Henry Ellenbogen and T. Rowe Price Group Inc. veteran, have conveyed their interest in acquiring a collective sum of approximately $300 million worth of Birkenstock stock, as outlined in the filing. Additionally, the family holding company of billionaire Bernard Arnault, Chairman of LVMH, who has already made investments in Birkenstock, is considering further purchasing up to $325 million in shares.

Birkenstock said that it would use the funds raised from this IPO offering to retire existing debt. A report last week disclosed that Birkenstock is gearing up for its road show, a significant test of the demand for new listings. The tentative schedule also includes pricing the offering on October 10th and initiating trading on October 11th, according to individuals with knowledge of the matter.

Birkenstock IPO Proceeds as US Government Shutdown Averts

Birkenstock is proceeding with its initial public offering (IPO) plans, undeterred by the mixed performances of several newly listed companies in September. Goldman Sachs, JPMorgan, and Morgan Stanley shall be the underwriters for the IPO.

The US securities regulator is well-equipped for IPO filings as the threat of a government shutdown has been averted, Thus, it could efficiently review applications from companies eager to capitalize on the long-anticipated reopening of the IPO market.

Birkenstock, renowned for its comfort-focused footwear, emphasizes the functionality of every aspect of its design, including buckles, straps, soles, and footbeds, as stated on its website. Nevertheless, the brand has also gained popularity among fashion enthusiasts, especially in recent weeks after being featured in the blockbuster movie “Barbie,” where Margot Robbie was spotted wearing pink Birkenstock sandals.

Established in 1774, Birkenstock remains a family-owned business. Besides, the company manufactures a majority of its products in facilities located in Germany’s Rhineland-Palatinate, North Rhine-Westphalia, Hesse, and Saxony regions.

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Bhushan Akolkar

Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.

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