Birkenstock Holding, a European shoemaker known for its luxury sandals, raised $1.5 billion in its IPO by offering 32.3 million shares (67% secondary) at $46, just below the midpoint of the range of $44 to $49.
Cornerstone investors including existing shareholder Financière Agache and new investors Durable Capital Partners and Norges Bank had indicated on $625 million of the IPO (42% of the deal).
Birkenstock's $1.5 billion offering makes it the year's third-largest US IPO, behind chip designer Arm (ARM) and consumer health giant Kenvue (KVUE), and the fifth-largest consumer discretionary IPO of the past 20 years. Year-to-date, 86 companies have listed in the US; of the 24 other IPOs that raised at least $100 million, the average first-day return is 20%, but -6% from there.
Acquired by L Catterton in 2021, Birkenstock has developed a portfolio of products based on its cork-latex footbed. The German company engineers and produces 100% of its products in the EU through vertically integrated manufacturing operations. Birkenstock uses a multichannel distribution strategy and has invested significantly in its online platform to support the DTC channel, establishing e-commerce sites in more than 30 countries. It also operates a network of owned retail stores, with 45 locations as of June 30, 2023. During the 12 months ended June 30, 2023, it booked $1.5 billion in sales.
Founded in 1774, Birkenstock plans to list on the NYSE under the symbol BIRK. Goldman Sachs, J.P. Morgan, Morgan Stanley, BofA Securities, Citi, Evercore ISI, Jefferies, UBS Investment Bank, BNP Paribas, Sanford Bernstein, and HSBC acted as joint bookrunners on the deal.
