German shoemaker Birkenstock has priced its initial public offering (IPO) at $46 U.S. per share and the stock is expected to begin trading on the New York Stock Exchange today (Oct. 11) under the ticker symbol “BIRK.”
The company had expected to price its IPO between $44 U.S. and $49 U.S. a share. At $46 U.S. per share, the stock sale will raise $1.5 billion U.S. and give Birkenstock a market value of $8.6 billion U.S.
The valuation gives Birkenstock a bigger market capitalization than many of its peers, including
Skechers (SKX) and Crocs (CROX).
Analysts say the high valuation reflects Birkenstock’s success in recent years. The company’s revenue grew from $770.9 million U.S. in fiscal 2020 to $1.3 billion U.S. in fiscal 2022. Net profits at Birkenstock have increased by $91 million U.S. over the past two fiscal years.
Birkenstock is holding its market debut after other recent IPOs fizzled shortly after their stocks got a big first-day gain.
Shares of British microchip designer Arm Holdings (ARM) have fallen below their opening trade, while the stock of online grocery company Instacart (CART) is trading below its IPO price.
Birkenstock has several deep pocketed backers behind it. Private equity firm L Catterton will remain the company’s majority owner after the IPO is completed.
Founded in 1774, Birkenstock is known mostly for its popular line of sandals.
