Birkenstock, the German footwear specialist, has set its initial public offering (IPO) price at $46 per share, establishing a company valuation of approximately $8.6 billion, according to reports on Wednesday. The IPO pricing aligns with the company's initial guidance of $44 to $49 per share. Trading under the ticker symbol 'Birk', Birkenstock will start its journey on the New York Stock Exchange this Wednesday.
The company's IPO plans were first confirmed in September through a Form F-1 filing with the Securities and Exchange Commission (SEC). Prior to this confirmation, there had been speculation about an IPO from the majority shareholder, L Catterton.
On its first trading day, Birkenstock's shares opened at $41, raising about $1.48 billion. The company's price-to-earnings multiple is higher than that of Skechers and Crocs (NASDAQ:CROX) but comparable to On Holding AG. Birkenstock has been expanding its product range, notably featuring the Arizona Big Buckle (NYSE:BKE) Nubuck Leather Sandal in a Mattel (NASDAQ:MAT) Barbie movie.
The IPO comes as concerns over discretionary consumer spending in footwear persist, underscored by Allbirds' market cap of $149 million.
Birkenstock's customer base is predominantly female, constituting 72% of its market. India has been identified as a potential growth market for the company.
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