Birkenstock Holding Plc and its private equity owner priced shares in the footwear maker’s initial public offering toward the middle of a marketed ranged to raise $1.48 billion.
(Bloomberg) — Birkenstock Holding Plc and its private equity owner priced shares in the footwear maker’s initial public offering toward the middle of a marketed ranged to raise $1.48 billion.
In a fourth big test of the US IPO market in a month, the German footwear and L Catterton sold about 32 million shares on Tuesday for $46 each after marketing them for $44 to $49, according to a statement.
At the IPO price, Birkenstock has a market value of $8.64 billion based on its filings with the US Securities and Exchange Commission. Including shares reserved for executives, directors and employees, the company has a diluted value of about $9.33 billion.
Birkenstock was selling 10.8 million of the shares in the IPO, while L Catterton was offering 21.5 million and will continue to own about 83% of the stock and control the company, according to the filings.
Billionaire LVMH Chairman Bernard Arnault’s family holding company, which has already invested in Birkenstock, may buy as much as $325 million of shares. The Norwegian sovereign fund and T. Rowe Price Group Inc. veteran Henry Ellenbogen’s Durable Capital Partners LP have expressed interest in buying as much as $300 million of stock in aggregate, according to the filing.
As much as 8% of the shares in the listing have been set aside for employees at the IPO price, according to the filings.
The offering is being led by Goldman Sachs Group Inc., JPMorgan Chase & Co. and Morgan Stanley. Birkenstock shares are expected to begin trading Wednesday on the New York Stock Exchange under the symbol BIRK.
The IPO comes after the best month for US listings since January 2022, according to data compiled by Bloomberg. UK chip designer Arm Holdings Plc, backed by SoftBank Group Corp., raised $5.23 billion including so-called greenshoe shares in September, followed by and grocery delivery startup Instacart at $660 million and marketing and data automation provider Klaviyo Inc. with a $576 million IPO.
Arm’s shares have gained a modest 9.2% from their IPO price, while Instacart is trading 10% below it offer price. Klaviyo has fared the best of the cadre but even after a 22.5% jump in its trading debut, its IPO investors have seen a return of 16%.
The mixed performance by those three have sharpened the focus on Birkenstock as dozens of startups that have been eying the public market decide whether to move next or keep waiting. Those companies include an array of diverse businesses including activewear brand Vuori Inc., weight-loss drugmaker Carmot Therapeutics and GameChange Solar, whose backers include a Koch Industries affiliate, among other candidates, Bloomberg News has reported.
Unlike many of those IPO candidates, Birkenstock is profitable, according to its filings. The successor company had net profit of €103 million ($109 million) on revenue of €1.12 billion for the nine months ended June 30, compared with €129 million on revenue of €925 million for the same period a year earlier.
Birkenstock plans to use proceeds from the offering to repay debt.
Founded nearly 250 years ago, Birkenstock’s sandals have been sold in the US since 1966 and are today worn by preppies and hippies alike. The company has become a high-fashion brand, launching collaborations with luxury names such as Dior, Manolo Blahnik and Valentino, and spawning variants from labels including Celine and Givenchy.
Birkenstock’s sales have been boosted of late by the blockbuster Barbie movie, which stars Margot Robbie in the title role donning a pair of pink Birkenstocks in one scene.
Birkenstock’s IPO comes more than two years after L Catterton and Arnault’s family investment company acquired a majority stake in the business at a valuation of about €4 billion. Since then, Birkenstock has been investing heavily in building out its production sites in Germany, including a new €120 million factory in Pasewalk, a town north of Berlin.
–With assistance from Swetha Gopinath and Gillian Tan.
(Updates with statement in second paragraph)
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