Birkenstock Holding Ltd (NYSE:BIRK), a premium footwear company based out of Germany valued itself at $8.6 billion after a successful US Initial Public Offering (IPO) at $46 per share. The price range was in the middle of its indicated offering range, the company said.
![Birkenstock, a premium footwear company in Germany has valued itself at $8.6 billion after a successful US IPO at $46 per share.](https://multisiasat.com/wp-content/uploads/2023/10/image-10.png)
Birkenstock and its underwriters played conservatively, having priced the IPO at the middle of the indicated range of $44 – $49 per share, due to the current market volatility, according to the reports by sources.
The US IPO raised about $1.48 billion for Birkenstock, against an offering of 32.3 million shares that valued the company at more than $8.6 billion, making the IPO successful. According to the reports, a third of these proceeds will go into debt repayments, while the rest will be going to the private equity owner, L. Catterton.
Although the company has been valued at $8.6 billion; However, when stock options and other rights are taken into account then, it makes an initial market value of $9.3 billion, on a fully diluted basis.
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US Markets Situation
Birkenstock is the fourth major company launching a US IPO; following Instacart, Arm Holdings, and Klaviyo. It is also the third-largest US listing of the year, according to Dealogic data.
A series of recent listings did raise hopes for a brief period of a wider recovery in the equity markets after nearly 18-months dry period. However, the trend followed by all the listings to give up most of their share price gains, just a few days after the IPO is certainly raising concerns over short-term outlook for new stock listings.
While shares of Klaviyo and Arm are still trading above-IPO levels, that of Instacart is trading lower, making it less valuable than its IPO.
It is also the second IPO for one of L. Catterton’s portfolio companies in a matter of few months, following the IPO of Oddity Tech, an online beauty retailer, on Nasdaq in July.Â
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