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 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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