Birkenstock Holding Plc is set to price its initial public offering (IPO) at the top of its $44-to-$49 range on Tuesday, potentially raising up to $1.58 billion and valuing the company at around $9.2 billion. The company and its private equity owner, L Catterton, are planning to sell 32 million shares. This move comes as a part of a wave of significant U.S. IPOs including Arm Holdings (NASDAQ:ARM) Plc, Instacart (NASDAQ:CART), and Klaviyo (NYSE:KVYO) Inc., which have brought an end to a two-year IPO drought.
However, the company's journey to public listing is not without cautionary tales from the industry. Instacart's shares have seen a 12% drop from their IPO price and shoemakers On Running shoes and Allbirds Inc., who went public in 2021, serve as reminders of potential pitfalls.
Birkenstock's sales were recently boosted by the visibility provided by actress Margot Robbie wearing their sandals in the Barbie movie. In an effort to stabilize the listing, the company is seeking anchor investors such as LVMH Chairman Bernard Arnault’s family holding company, Norwegian sovereign fund, T. Rowe Price Group Inc., and Durable Capital Partners.
The company has reserved up to 8% of the shares for employees at the IPO price. After the public offering, L Catterton will retain about 83% ownership of Birkenstock.
Birkenstock has also fostered collaborations with luxury brands such as Dior and Valentino in an effort to diversify its portfolio. The offering is being led by Goldman Sachs Group Inc (NYSE:GS)., JPMorgan Chase & Co. (NYSE:JPM), and Morgan Stanley (NYSE:MS), with shares set to trade under the symbol BIRK.
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