Birkenstock is expected to price its IPO at $46 per share

October 10, 2023 02:47 PM PDT | By Invezz

Birkenstock is expected to price its IPO at $46 per share — Image source: Invezz

Birkenstock tentatively valued at $8.64 billion

If the Neustadt-headquartered company does indeed go public at that price, it will command a valuation of about $8.64 billion – well above the market cap of peer Crocs and in line with On Running.

Note that Birkenstock had originally sought up to $9.2 billion in market cap. The IPO could bring in close to $1.50 billion in total, a person familiar with the matter told CNBC today.

Birkenstock has been in the shoe business since 1774. The German brand is about to be listed on the New York Stock Exchange more than two years after L Catterton – a private equity firm based out of Greenwich announced a majority stake in it.

At the time, the footwear giant was valued at about $4.85 billion.

The Birkenstock IPO could have an outsized effect on markets, as an indicator of whether risk capital is back. I use the company as a vehicle for valuing its multiple intangibles – brand name, celebrity customers, great management & even the Barbie buzz. https://t.co/sAyBZ8k0uQ

— Aswath Damodaran (@AswathDamodaran) October 6, 2023

Birkenstock has seen massive revenue growth

Birkenstock plans on using proceeds from the initial public offering to lower its debt, as per a recent securities filing. It’s going public to boost its valuation and be able to access capital markets.

The shoe company has been doing rather well in recent years. Its direct-to-consumer strategy helped sales climb a whopping 70% to €1.24 billion ($1.31 billion) between its fiscal 2020 and fiscal 2022.

Birkenstock had €187 million in net income in its last financial year as it focused on accelerating sales of its pricier products and terminated a few wholesale partnerships in its primary markets.

Ther German brand had its stylish and comfortable sandals feature in the recent blockbuster – “Barbie”. Birkenstock is going public only about a month after Klaviyo listed on the New York Stock Exchange as well (find out more).

Watch here: https://www.youtube.com/embed/9uBotzZf7Ps?feature=oembed

The post Birkenstock is expected to price its IPO at $46 per share appeared first on Invezz

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