Birkenstock officially priced its initial public offering of about 32.3 million ordinary shares at $46 per share.
The company is expected to start trading on the New York Stock Exchange on Wednesday under the symbol BIRK, according to a Tuesday press release. The price point is near the mid-point of the footwear brand’s previously expected range of $44 to $49 per ordinary share. Birkenstock is offering about 10.8 million ordinary shares and the selling shareholder is offering 21.5 million ordinary shares.
Additionally, the selling shareholder is providing underwriters a 30-day option to purchase up to 4.8 million additional ordinary shares to cover over-allotments. Birkenstock will be a controlled company with the completion of the IPO, with private equity firm L Catterton holding a majority of the combined voting power of its outstanding ordinary shares.
Birkenstock’s $46 share pricing will give the company a valuation of about $8.6 billion. The brand filed its initial registration statement with the U.S. Securities and Exchange Commission for a proposed initial public offering in September.
The company’s filings showed that its revenue during fiscal 2022 reached 1.24 billion euros (about $1.3 billion as of press time) and it recorded a net profit of 187.1 million euros. Birkenstock’s revenues for the nine months ended June 30, 2023, increased 21% year over year to 1.12 billion euros while its net profit decreased about 20% from 129 million euros to 103 million euros.
Birkenstock enters the market as some disruptor brands have seen their stock prices drop since going public years ago. Warby Parker, Allbirds and Peloton saw their stock jump during the COVID-19 pandemic, but have more recently seen prices plummet. Footwear and athletics brand On has seen its stock value rise again over the last few months as it has reported record quarterly performance.
