Birkenstock Aims for $9.2 Billion Valuation in Highly Anticipated IPO

German premium footwear brand Birkenstock, backed by private-equity firm L Catterton, has announced its plans for a highly anticipated initial public offering (IPO) in the United States. Seeking a valuation of up to $9.2 billion, the company and its stockholders are looking to sell at least 32 million shares, with an expected price range of $44 to $49 per share. This could potentially raise about $1.58 billion at the top end of the range.

The IPO market has been slowly reviving after a period of inactivity, and Birkenstock’s listing on the New York Stock Exchange under the ticker symbol ‘BIRK’ is expected to generate significant interest. However, market conditions and investor sentiment remain sensitive, especially with the anticipation of lingering high interest rates. As a result, the final IPO price may end up being lower than the initial expectations.

Notable investors expressing interest in buying shares include Financière Agache, controlled by the Arnault family that owns LVMH, who has indicated an interest in purchasing $325 million of ordinary shares. Additionally, Durable Capital Partners LP and Norges Bank Investment Management have separately expressed interest in buying shares worth $300 million.

Birkenstock, known for its comfort-focused footwear, has also gained popularity among fashion enthusiasts. Recently, the brand received increased attention after one of its products was featured in a blockbuster movie, where actress Margot Robbie was seen wearing a pair of pink Birkenstock shoes.

Founded in 1774, Birkenstock is a sixth-generation family-owned business. Despite the challenging demand environment for luxury goods, the company reported a 21% increase in revenue for the nine-month period ending June 30, showcasing its resilience.

Goldman Sachs, J.P. Morgan, and Morgan Stanley are among the underwriters for the IPO, further highlighting the market’s interest in Birkenstock’s offering.

While the IPO market continues to regain momentum, Birkenstock’s valuation and public debut will be closely watched by investors and industry observers alike.