Birkenstock Valued at US$8.6 Billion, Opened at US$41 Per Share

Birkenstock made its highly anticipated debut on the New York Stock Exchange (NYSE) under the ticker BIRK on Oct. 11, with an initial share price of US$41, significantly below the US$46 of its initial public offering (IPO).

Birkenstock, along with its private equity owner, L Catterton, sold about 32 million shares. This resulted in a market valuation of US$7.5 billion. When considering shares allocated for executives, directors and employees, the company's diluted value is approximately US$8.15 billion.

After 250 years, Birkenstock went public following the family’s decision to step back from operations in 2013. In 2021, it formed a partnership with L Catterton, a private equity firm, marking the beginning of its journey toward going public. L Catterton is backed by Moët Hennessy Louis Vuitton (LVMH), the French luxury fashion house, which acquired a majority stake in the German shoe company.

“Going public is a logical next step for the company, commencing with the Birkenstock family’s decision to step back from the operational business in 2013,” reads Birkenstock’s press release. “The partnership with L Catterton advanced Birkenstock to the next stage, and now, with the listing of Birkenstock Holding plc on the NYSE, a new important chapter begins as the company welcomes a broader group of investors.”

Birkenstock’s stock debut is reported to be one of the weakest in the history of the NYSE, with a loss of more than 10% on the first day. The stock is now valued at US$38.05. In the nine months ending in June, Birkenstock reported revenues of US$1.1 billion, a 21% increase year on year. However, net profits saw a 20% decrease to US$108 million, according to the Financial Times.

“We are excited to embark on this new chapter as a public company and look forward to empowering even more people to walk the way nature intended,” says Oliver Reichert, CEO, Birkenstock, in a press release.  “We are a company focused on long-term sustainable growth and this is reflected in our shareholder base.”

The sandal company has been operating in Mexico since 2005, with over 11 physical points of sale in the country. 

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