German sandal maker Birkenstock, founded in 1774 by Johann Adam Birkenstock, made its debut on the New York Stock Exchange on Wednesday. The company, under the leadership of CEO Oliver Reichert, launched its initial public offering (IPO) under the ticker symbol "BIRK". The IPO shares were priced at $46 each, putting the company's valuation at $8.64 billion, a notable figure considering the company's adjusted market cap of 7.93M USD according to InvestingPro data.
Birkenstock Holding Ltd. and shareholders sold a total of 32.3 million shares in the IPO, raising approximately $495 million. The offering included 10.8 million shares sold by the company itself, while an additional 21.5 million shares were offloaded by shareholders. The company's consistent financial performance, as indicated by InvestingPro Tips, such as its ability to maintain dividend payments for seven consecutive years and sufficient cash flows to cover interest payments, may have contributed to the investor interest.
The company's entrance to the stock market comes amid a shift on Wall Street from wingtips to sandals, marking a significant increase from last year's total of 71 IPOs in the U.S. This follows recent IPOs from Arm Holdings (NASDAQ:ARM), Klaviyo (NYSE:KVYO), and Instacart (NASDAQ:CART). The company's consistent profitability over the last twelve months, as per InvestingPro Tips, may have also added to this shift.
Despite being viewed as the antithesis of high fashion, Birkenstock has managed to cultivate a strong cult following over the years. Its popularity has even spread to Hollywood, with the brand being featured in the recent "Barbie" movie. The company's ability to maintain a moderate level of debt, as highlighted by InvestingPro Tips, may have contributed to its long-standing popularity and financial stability.
The company's sandals were displayed at its store in Frankfurt ahead of Wednesday's IPO, reflecting anticipation for its debut on the New York Stock Exchange. For those interested in more insights like these, InvestingPro offers additional tips and real-time metrics for a wide range of companies.
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