Birkenstock aims for IPO valuation of over $9bn

The German sandal manufacturer Birkenstock will be valued at over $9bn this month in an Initial Public Offering. This is the latest sign that the US market has been reviving after a lack of new listings since 2022.

Birkenstock announced in an updated prospectus it would sell its stock between $44-$49 per share. This would raise $1.6bn to the company and L Catterton, who owns it.

Birkenstock’s initial market capitalisation would be $9.2bn, based on the outstanding shares, after the offering. Or $9.9bn, if the shares are fully diluted.

L Catterton is expected to be listed next week. The business is backed up by the French luxury fashion house LVMH.

Birkenstock said that it would use funds from the sale to pay off debts, and the remainder will be given to L Catterton.

Anchor investors have been lined up by the company and its advisors. Financiere Agache – the holding company owned by LVMH’s chief executive Bernard Arnault – has expressed an interest in buying up to $325mn worth of shares.

According to the filing, Arnault’s son Alexandre will join the board of directors after the initial public offering.

The Norwegian sovereign wealth funds and Durable Capital Partners intend to purchase up to $300mn more shares.

A US government shutdown almost threw the company’s plans for listing off course. However, a deal was reached by lawmakers at the last minute over the weekend.

Birkenstock’s roots date back to 1774. In 2021, L Catterton acquired a majority stake of the company in a €4bn transaction.

The company reported revenue of €1.1bn for the nine-month period ending June 30, up 21% on the previous year. Net profits fell 20 per cent, to €103mn.

According to Dealogic, it is expected to be the third largest US listing this year.

After a series of tech listings, September saw a number of bankers hoping that a deal with a well-known brand like Birkenstock would provide an boost for the market.

One senior IPO banker said, “It’s important because it’s a completely different sector. It gives a broader range of data to encourage other potential IPO candidate.”

Arm, Instacart, and Klaviyo priced deals above or at the top end of their target ranges in December, but trading has been inconsistent in the weeks that followed. In total, US companies have raised more than $17.4bn through IPOs this year. This is up by over 140 percent from the same time last year.