Topline
German footwear company Birkenstock will begin trading its stock Wednesday at $46 a share, according to multiple reports, marking a tentative valuation of $8.6 billion—about twice the amount of cash it was purchased for in 2021.
Birkenstock models stand in a retail store of the shoe manufacturer in Berlin on September 13, 2023. … [+]
Key Facts
Birkenstock, which planned for an IPO within the $44 to $49 range, is expected to price the Wednesday IPO at $46 and trade under the ticker BIRK, according to the Wall Street Journal.
The company planned to sell about 32 million shares between the $44-to-$49 per share range, though it is unclear if that number will stay true Wednesday.
Birkenstock revealed early this month that Financière Agache, the Arnault family office with a controlling stake in the company, and the Norwegian sovereign wealth fund indicated they would cumulatively purchase up to $625 million in stock.
The stock is expected to trade on the New York Stock Exchange, just under a month after Birkenstock filed for an IPO.
Birkenstock did not immediately respond to Forbes’ request for comment.
Tangent
A filing with the Securities and Exchange Commission revealed Alexandre Arnault, the son of billionaire LVMH chair Bernard Arnault, was nominated to direct Birkenstock’s board of directors.
Forbes Valuation
We estimate Arnault’s net worth at $191.3 billion, making him the second-wealthiest person in the world behind Tesla CEO Elon Musk.
Key Background
Birkenstock will be the fourth major company to go public in the U.S. within the last month or so. LVMH-backed private equity firm L Catterton bought a majority stake in the company two years ago, when the sandal company was worth $4.3 billion. Birkenstock was founded in 1774 and in 2010, the company’s family heirs stepped down from the company.
Further Reading
Birkenstock Files For IPO Two Years After Its $4.3 Billion Acquisition (Forbes)
Birkenstock Seeks Up To $9.2 Billion Valuation In IPO—And Taps Billionaire Arnault’s Son For Board (Forbes)
Source: https://www.forbes.com/sites/antoniopequenoiv/2023/10/10/birkenstock-sets-46-per-share-ipo-price/