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German sandal maker Birkenstock priced its shares at $46 in an initial public offering ahead of its first day of trading on Wednesday, giving the company a market valuation of $8.6bn.
The price is in the middle of a range of $44 to $49 set by the company last week, reflecting demand for its shares as the group perpetuates a revival in the US IPO market after a dearth of deals since the start of 2022.
Birkenstock’s public debut will raise about $1.5bn, with a third of the proceeds going to the company to repay debt and the rest going to private equity owner L Catterton. On a fully diluted basis, which takes into account stock options and other rights, the company would have an initial market value of $9.3bn.
It is set to be the third-largest US listing of the year, according to Dealogic data. Birkenstock will trade on the New York Stock Exchange.
L Catterton, which is backed by French luxury fashion house LVMH, bought a majority stake in a €4bn deal in 2021 — the first time Birkenstock had taken private equity financing.
The company and its advisers have lined up anchor investors for the deal. Financière Agache, the family holding company of LVMH chief executive Bernard Arnault, has indicated an interest in purchasing up to $325mn of shares, according to a prospectus for the offering.
Arnault’s son Alexandre is expected to join the company’s board of directors following the IPO.
The Norwegian sovereign wealth fund and Durable Capital Partners also plan to buy up to a further $300mn of shares.
Birkenstock, which traces its roots back to 1774, reported revenue of €1.1bn ($1.2bn) in the nine months to the end of June, up 21 per cent year on year. However, net profits dropped 20 per cent to €103mn.
The market debut comes after three high-profile listings last month.
The tech-related companies Arm, Instacart and Klaviyo all priced their IPO deals at the top of or above their target ranges, though trading in the stocks has been mixed in the weeks since.
It would also be the second IPO for one of L Catterton’s portfolio companies in a matter of months, following online beauty retailer Oddity Tech’s listing on the Nasdaq exchange in July.
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