Birkenstock, the iconic German shoe brand, priced its initial public offering (IPO) at $46 per share, putting its valuation at around $8.64 billion. This pricing falls just below the midpoint of the expected range of $44 to $49 per share and is slightly lower than the originally sought valuation of up to $9.2 billion.
The company aimed to sell approximately 10.75 million ordinary shares in the offering, potentially raising about $495 million. With the inclusion of the 21.51 million shares from selling stockholders, the total offering could bring in approximately $1.48 billion. The IPO occurs amid a somewhat turbulent market, with recent filers experiencing muted debuts.
Birkenstock, with a history dating back to 1774, decided to go public approximately two years after private equity firm L Catterton acquired a majority stake at a $4.85 billion valuation. Going public allows Birkenstock to enhance its valuation and access capital markets. The funds raised from the IPO will be used to pay off loans, according to securities filings. The company’s recent growth, along with its cameo in the “Barbie” movie, has attracted investor interest.
Despite challenges in the footwear sector due to a consumer spending slowdown and a shift to services over goods, Birkenstock’s sales surged from €728 million ($771 million) to €1.24 billion ($1.32 billion) between fiscal 2020 and 2022. The growth was attributed to a direct-to-consumer strategy, exiting specific wholesale partnerships, and increasing sales of higher-priced items. In fiscal 2022, Birkenstock reported a net income of approximately €187 million ($198 million).
