2023-10-08 17:10:56
Birkenstock Holding has secured enough commitments from investors to price its U.S. IPO at the top of the indicated range and achieve a valuation of $10 billion, according to people familiar with the matter. .
The German high-end shoe company will make a final decision on pricing its IPO at the top of its $44 to $49 per share range on Tuesday, before listing its shares in New York on Wednesday, the sources said. .
Birkenstock would raise $1.58 billion at the top of the range.
The sources said the deliberations were fluid and requested anonymity due to the confidential nature of the matter. Birkenstock declined to comment.
Birkenstock is the fourth major company to launch a U.S. IPO in the past four weeks, following chipmaker Arm Holdings, grocery delivery app Instacart and marketing automation platform Klaviyo.
These companies priced their IPOs at or above the stated range and saw their shares soar upon launch, before giving up most of their gains in the days that followed. While Arm and Klaviyo’s shares are still trading above their IPO price, Instacart’s stock is now worth less than its IPO value.
This explains why Birkenstock is not inclined to raise its IPO price range despite strong initial investor demand.
The company is already seeking to achieve a higher valuation than some major shoe brands. It would be worth about 27 times trailing 12-month earnings before interest, taxes, depreciation, and amortization at the top of its range, while Nike trades at 21 times.
To leave no room for chance, Birkenstock launched the roadshow for its IPO last week, with a few investors in its sights. Financière Agache has expressed interest in purchasing $325 million of shares, while Durable Capital Partners and Norges Bank Investment Management have expressed interest in $300 million of shares, Birkenstock said in a filing. archives.
Growth stock investor Baron Funds placed an order for $500 million worth of shares after the road show kicked off, the sources said. Between the major investors and Baron, shares worth about $1.13 billion are expected to be booked, the sources said.
Birkenstock was founded in 1774 in the German village of Langen-Bergheim by Johannes Birkenstock and his younger brother Johann Adam Birkenstock, both shoemakers. The Birkenstock family ran the company for six generations after its founding.
The brand sought to position itself as a fashion item worn by models and celebrities. Barbie, played by Margot Robbie, wore a pair of pink Birkenstocks in the final scene of the film released this summer.
L Catterton, the private equity group backed by French billionaire Bernard Arnault and luxury empire Louis Vuitton Moet Hennessy, acquired a majority stake in Birkenstock in 2021.
Following the IPO, L Catterton will own an 82.8% stake in Birkenstock and control the majority of the combined voting rights of its outstanding shares.
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