Birkenstock (BIRK) got off on the wrong foot with investors, slipping 12.9% on its first day of trading on Wednesday, one of the worst debuts for a billion-dollar IPO of the past decade.
Bought by L Catterton in 2021 in a deal valued at about $4.9 billion, Birkenstock priced slightly below the midpoint at $46, raising $1.5 billion at a market cap of $8.6 billion ($10.0B EV), with existing shareholders selling 67% of the deal. Its first-day flop marks the worst initial return for a billion-dollar IPO since AppLovin in April 2021 (-18.5% on its first day).
Of the 95 IPOs that have raised at least $1 billion in the past 10 years, only five performed worse than Birkenstock on day one. The group of 95 large listings has averaged a first-day return of 20.6%, with a median of 12.6%; excluding the boom-years of 2020 and 2021, the average and median were 12% and 8%, respectively. Larger IPOs are generally at a lower risk of immediately breaking issue: only 20% of the past decade's billion-dollar IPOs closed negative on the first day, compared to 27% for all IPOs.
Below we show the 10 worst-performing billion-dollar IPOs of the past decade...
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