LVMH-owned 'world's oldest start-up' files for IPO in US
German footwear brand Birkenstock has filed for an initial public offering (IPO) in the US. This makes it the second European company besides SoftBank Group-owned Arm, to seek a foreign listing this month. The move comes as US equity markets recover after a slow start to the year, with IPO listings fetching nearly double the amount secured in 2022.
Iconic footwear brand's popularity soars
Birkenstock is a family-owned business founded in 1774, known for its comfortable footwear and growing popularity among fashion enthusiasts. The brand's recent marketing campaign featuring Margot Robbie wearing pink Birkenstocks in the blockbuster movie Barbie has further boosted its appeal. The IPO follows filings by British chipmaker Arm, data automation provider Klaviyo, and grocery delivery app Instacart.
Financial details and key IPO players
While the IPO filing did not disclose financial details, it revealed that Birkenstock's net revenue for the six months ending March 31, climbed 19%, and profit plunged by 45.3%. For over two centuries, Birkenstock was owned by its German founding company. But in 2021, a private equity firm L Catterton acquired the brand for $4.3 billion. L Catterton itself is owned by the French luxury fashion brand LVMH.
European companies seek US listing boost
Birkenstock's plan to list outside Europe comes amid lackluster IPO conditions in the region, with volumes far below 2021's record levels. Arm and now Birkenstock have sought foreign listings as US equity markets recover. Birkenstock plans to list its stocks under the "BIRK" ticker on the New York Stock Exchange (NYSE), following the successful NASDAQ debut of L Catterton's beauty firm Oddity Tech in July. Birkenstock's NYSE listing could value it at more than $8 billion.
