Birkenstock models stand in a retail store of the shoe manufacturer. The corporate plans to go public in Latest York.
Sebastian Christoph Gollnow | Picture Alliance | Getty Images
Birkenstock, the longtime German shoe brand known for its comfortable and sturdy styles, is predicted to cost its IPO at $46 per share on Tuesday, giving it a tentative valuation of about $8.64 billion, in accordance with an individual accustomed to the matter.
The expected pricing got here in only shy of the midpoint of Birkenstock’s stated range of $44 to $49 per share and offers it a market cap that is above Crocs and according to Swiss shoe brand On Running. The pricing could still change and hasn’t been confirmed by Birkenstock.
The pricing could still change and hasn’t been confirmed by Birkenstock.
Birkenstock had originally sought a valuation of as much as $9.2 billion.
The corporate initially expected to sell about 10.75 million abnormal shares within the offering and will raise around $495 million when it begins trading on the Latest York Stock Exchange under the ticker “BIRK.”
Combined with the 21.51 million in shares its selling stockholders were trying to offload, the offering could herald around $1.48 billion.
Birkenstock’s offering comes because the IPO market stays choppy after a variety of recent filers began trading in muted debuts.
Instacart priced its long awaited IPO at $30 per share last month. But after an initial 40% pop, it closed at $33.70 on its first day on the Nasdaq and is now trading below its opening share price. Similar trends have followed Johnson & Johnson spinoff Kenvue and sweetness and wellness firm Oddity Tech.
Birkenstock, which has been within the footwear business since 1774, goes public about two years after private equity firm L Catterton took a majority stake within the business at a valuation of $4.85 billion. It decided to go public so it might probably boost its valuation and gain access to the capital markets, and plans to make use of proceeds from the offering to repay loans, in accordance with a securities filing.
The corporate’s growth – and the bump in relevancy it received after its recent cameo within the “Barbie” movie – has attracted interest from investors, at the same time as the footwear sector faces pressure from a slowdown in consumer spending and a shift to services over goods.
Between fiscal 2020 and 2022, sales jumped from 728 million euros ($771 million) to 1.24 billion euros ($1.32 billion) as the corporate leaned into its direct-to-consumer strategy, exited certain wholesale partnerships in key markets and boosted sales of things with higher price points.
It posted a net income of about 187 million euros ($198 million) in fiscal 2022.
