Birkenstock’s IPO Set to Reach $10 Billion Valuation, Pricing at the Top of Range

German premium footwear company Birkenstock Holding Ltd is set to achieve a valuation of $10 billion as it secures enough commitments from investors 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 will be made on Tuesday, with the shares debuting in New York on Wednesday.

Birkenstock’s IPO is expected to raise $1.58 billion at the top of the range, making it the fourth major company to launch a U.S. IPO in the last four weeks. Despite the recent trend of IPOs seeing shares rally at debut and then giving up most of the gains in the following days, Birkenstock remains confident in its pricing strategy. The company aims to achieve a valuation that surpasses some bigger shoe brands, with a price-to-earnings ratio of about 27 times trailing 12-month earnings before interest, taxes, depreciation, and amortization, compared to Nike Inc’s 21 times.

To ensure a successful IPO, Birkenstock initiated a roadshow last week, already attracting interest from investors. Financière Agache has indicated its intention to purchase $325 million worth of shares, while Durable Capital Partners LP and Norges Bank Investment Management have shown interest in $300 million worth of shares, as disclosed in a filing by Birkenstock.

Founded in 1774 by Johannes Birkenstock and his brother Johann Adam Birkenstock, the German brand has been working to position itself as a fashionable item worn by models and celebrities. In fact, Birkenstock gained further recognition when Margot Robbie’s character, Barbie, sported a pink pair of Birkenstocks in a recent movie.

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

With its IPO pricing at the top of the range, Birkenstock is poised to make a significant impact in the footwear industry and further solidify its position as a leading global brand.