'World's oldest start-up' prices IPO at $46 per share
Birkenstock Holding, touted as the world's oldest start-up, has set its US initial public offering (IPO) price at $46 per share, landing right in the middle of the projected range of $44-49. Despite strong demand for a higher share price, the LVMH-owned German footwear giant opted for a more conservative approach due to current market fluctuations. The IPO raised around $1.48 billion by selling 32.3 million shares, giving Birkenstock a valuation of nearly $9.3 billion on a fully diluted basis.
Recent IPOs and market outlook
Birkenstock's IPO follows in the footsteps of chip designer Arm Holdings, grocery delivery app Instacart, and marketing automation platform Klaviyo. These recent listings initially ignited optimism for a rebound in equity capital markets after an 18-month dry spell. While Arm and Klaviyo continue to trade above their IPO prices, the value of Instacart's stock has fallen below its IPO value.
Birkenstock's history and fashion evolution
Birkenstock has come a long way since it was founded in 1774 by shoemakers Johannes Birkenstock and Johann Adam Birkenstock in Langen-Bergheim, Germany. The family-run business spanned six generations and transformed into a trendy brand sported by models and celebrities alike. Even Margot Robbie rocked pink Birkenstocks in the final scene of the movie Barbie released this summer.
L Catterton's majority stake and IPO details
In 2021, L Catterton, a private equity firm backed by French billionaire Bernard Arnault and luxury goods powerhouse Louis Vuitton Moet Hennessy (LVMH), acquired a majority stake in Birkenstock for $4.3 billion. After the IPO, Catterton will maintain an 82.8% stake in the company and hold the majority of its combined voting power. Birkenstock's shares are set to start trading on the New York Stock Exchange under the ticker "BIRK."
