Birkenstock eyes IPO price at top of range, sources say


NEW YORK, Oct 8 (Reuters) – Birkenstock Holding (BIRK.N) has raised enough from investors to price its U.S. initial public offering (IPO) at the top of the indicated range and achieve a valuation of $10 billion, according to people familiar with the matter. Commitments have been achieved. With case.

The German premium footwear company will make a final decision on whether to price its IPO at a high of $44 to $49 a share on Tuesday ahead of the debut of its shares in New York on Wednesday, the sources said.

Birkenstock would raise $1.58 billion at the top of the range.

The sources cautioned that discussions are fluid and requested anonymity because the matter is confidential. Birkenstock declined to comment.

Birkenstock is the fourth major company to launch a US IPO in the past four weeks, following chip maker Arm Holdings, grocery delivery app Instacart (CART.O) and marketing automation platform Klaviyo (KVYO.N).

They priced their IPOs at or above their indicated range and saw their shares rise initially, but lost most of the gains in the following days. While shares of Arm and Clavio are still trading above their IPO price, Instacart’s stock is now below its IPO price.

This helps explain why Birkenstock has been reluctant to raise its IPO price range despite strong demand from early investors.

It’s already looking for a valuation that’s more attractive than some of the bigger shoe brands. When Nike (NKE.N) trades at 21x, it would be valued at about 27x trailing 12-month earnings before interest, taxes, depreciation and amortization, at the top of its range.

Leaving little to chance, Birkenstock last week began a roadshow for its IPO with some investors. Birkenstock revealed in a filing that financier Agache has expressed interest in buying $325 million worth of shares, while Durable Capital Partners and Norges Bank Investment Management have expressed interest in buying $300 million worth of shares.

Growth equity investor Baron Funds ordered shares worth $500 million after the roadshow began, sources said. About $1.13 billion worth of stock is expected to be settled between Cornerstone investors and Barron’s, the sources said.

Birkenstock was founded in 1774 in the German village of Langen-Bergheim by Johannes Birkenstock and his younger brother Johann Adam Birkenstock, both of whom were cobblers. The Birkenstock family ran the business for six generations after its founding.

The brand wants to be recognized as a fashionable item worn by models and celebrities. Barbie, played by Margot Robbie, wore a pink pair of Birkenstocks in the final scene of the film, released this summer.

L Catterton, the private equity group backed by French billionaire Bernard Arnault and luxury goods empire Louis Vuitton Moët Hennessy (LVMH.PA), acquired a majority stake in Birkenstock in 2021.

Following the IPO, L Catterton will own 82.8% of Birkenstock and control the majority of the combined voting power of its outstanding shares.

Reporting by Anirban Sen in New York, Editing by Chris Reese and Lisa Shumaker

Our Standards: The Thomson Reuters Trust Principles.

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Anirban Sen is editor in charge of US M&A at Reuters in New York, where he leads coverage of the largest deals. Having started at Reuters in Bangalore in 2009, Anirban left in 2013 to work as a technology deals reporter at several of India’s leading business news outlets, including The Economic Times and Mint. Anirban re-joined Reuters in 2019 as editor-in-charge, finance, to lead a team of journalists covering everything from investment banking to venture capital. Anirban holds a degree in History from Jadavpur University and a Post Graduate Diploma in Journalism from the Indian Institute of Journalism and New Media. Contact:+1 (646) 705 9409

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