Birkenstock IPO Secures $10 Billion Valuation, Pricing at Top of Range

German premium footwear company Birkenstock Holding is set to achieve a $10 billion valuation as it secures enough investor commitments to price its U.S. initial public offering (IPO) at the top of its indicated range, according to sources familiar with the matter. The final decision on pricing the IPO at the top of the $44-to-$49-per-share range is expected to be made on Tuesday, with the company’s shares debuting in New York on Wednesday.

If the IPO is priced at the top of the range, Birkenstock would raise $1.58 billion. This comes as the company becomes the fourth major firm to launch a U.S. IPO in the past month, following the successful debuts of Arm Holdings, Instacart, and Klaviyo. Despite the recent volatility in the market, Birkenstock remains confident in its pricing strategy, aiming for a valuation that surpasses some larger shoe brands.

To further solidify investor interest, Birkenstock initiated its IPO roadshow last week, already securing commitments from cornerstone investors such as Financiere Agache, Durable Capital Partners, and Norges Bank Investment Management. Additionally, growth equity investor Baron Funds has placed a substantial order for $500 million worth of shares.

Birkenstock, founded in 1774, has been making strides to position itself as a fashionable brand worn by models and celebrities. The company’s recent appearance in the movie industry, with Barbie donning a pair of pink Birkenstocks in a popular film, has further boosted its reputation.

Following the IPO, private equity group L Catterton, backed by French billionaire Bernard Arnault and luxury goods empire Louis Vuitton Moet Hennessy, will hold an 82.8% stake in Birkenstock and control the majority of the combined voting power of its outstanding shares.

With the IPO pricing at the top of its range and strong investor demand, Birkenstock is poised for a successful debut on the New York Stock Exchange, solidifying its position as a leading player in the premium footwear market.