German footwear giant Birkenstock and its private equity owner, L Catterton, have successfully completed their IPO, pricing shares at $US46 each, firmly positioning the iconic sandal maker on the American stock market. This move marks the fourth significant test of the US IPO market this month and underscores the strong investor appetite for new opportunities.
Birkenstock, renowned for its comfortable and enduring sandals, offered approximately 32 million shares to the public, settling on a share price within the marketed range of $US44 to $US49. This pricing strategy allowed the company to secure an impressive $US1.48 billion ($2.3 billion) in funding.
At the IPO price of $US46 per share, Birkenstock boasts a market capitalization of $US8.64 billion, as confirmed by the company's filings with the US Securities and Exchange Commission. When considering shares reserved for executives, directors, and employees, Birkenstock's diluted value totals approximately $US9.33 billion.
Birkenstock's IPO comprised 10.8 million shares offered by the company itself, while L Catterton, the private equity firm that acquired a stake in Birkenstock, put up 21.5 million shares for sale. After the IPO, L Catterton will retain a substantial 83% ownership stake in Birkenstock, maintaining its firm grip on the company's management and direction, according to the filings.
Notably, billionaire Bernard Arnault's family holding company, an affiliate of luxury conglomerate LVMH, which had previously invested in Birkenstock, is reportedly considering an additional investment of up to $US325 million in Birkenstock shares. The Norwegian sovereign fund and Henry Ellenbogen's Durable Capital Partners have also expressed interest in acquiring as much as $US300 million worth of Birkenstock shares in total, as outlined in the official filing.
Furthermore, up to 8% of the shares offered in the IPO have been earmarked for employees at the IPO price, signifying a commitment to rewarding those within the organization. The IPO is being masterminded by prominent financial institutions including Goldman Sachs, JPMorgan, and Morgan Stanley. Market observers anticipate that Birkenstock's shares will commence trading on Wednesday in New York, further testing the waters of the US IPO market.
Birkenstock's entrance into the public market reflects the enduring appeal of its products and the trust investors have in its future growth prospects. As the company embarks on this new chapter, all eyes will be on the performance of its shares in the days and weeks ahead.