Q1 ebook

Report: Birkenstock Prepares for IPO, Targets $10 Billion Market Capitalization


Birkenstock is reportedly gearing up for its highly anticipated initial public offering (IPO) with a target valuation of $10 billion. 

If successful, this move would position Birkenstock as the third-largest footwear company in terms of market capitalization, trailing only behind industry giants Nike and Deckers Outdoor Group, Seeking Alpha reported Tuesday (Sept. 26).

Birkenstock did not immediately reply to PYMNTS’ request for comment.

The German footwear brand is set to commence its roadshow next week, with the offering price expected to be established on Oct. 10 and trading commencing the following day, according to the report.

Despite recent IPOs experiencing stock price drops shortly after going public, such as Arm Holdings and Instacart, Birkenstock remains determined to proceed with its IPO plans, the report said.

Birkenstock is backed by LVMH Moët Hennessy Louis Vuitton and L Catterton, Société Européenne’s private equity arm, per the report. L Catterton and LVMH CEO Bernard Arnault’s family office acquired a majority stake in Birkenstock over two years ago when the company was valued at approximately $4.3 billion. 

The company made its IPO filing on Sept. 12, saying it would go public through an IPO in New York. The Financial Times (FT) reported at the time of the filing that Birkenstock aimed to achieve a valuation of over $8 billion in its IPO and that the company aimed to list during the week of Oct. 9.

Birkenstock’s filing for an IPO is seen as a positive sign for the U.S. market for listings, which has been experiencing a revival after a more than 18-month downturn, according to the FT report. The company’s decision to join the New York Stock Exchange follows successful high-profile deals and listings, indicating renewed confidence among dealmakers and IPO candidates.

At the same time, two of the most recent entrants — Arm Holdings and Instacart — flirted with “busted” status shortly after their debuts, with their stock trading near their IPO price after an initial surge.

This happened during a volatile week on Wall Street, and it makes sense that the volatility would hit the shares, PYMNTS reported on Sept. 22, as the Federal Reserve hints at future interest rate hikes rattled investors.