Birkenstock Holdings (NYSE: BIRK) has revealed the pricing details of its initial public offering (IPO), set to offer 32,258,064 ordinary shares to the public, each priced at $46.00 per share. This IPO comprises 10,752,688 shares from Birkenstock itself and an additional 21,505,376 shares from a selling shareholder.
A fully subscribed offering would amount to around $1.48 billion in proceeds. But on top of this, Birkenstock has also granted the underwriters a 30-day option to purchase up to an additional 4,838,709 ordinary shares to cover any over-allotments that may arise, bringing total proceeds to a potential $1.71 billion.
The ordinary shares are scheduled to commence trading on the New York Stock Exchange under the symbol “BIRK” starting October 11, 2023. The closing of this offering is subject to customary closing conditions and is projected to take place on October 13, 2023.
The joint lead book-running managers include Goldman Sachs & Co. LLC, J.P. Morgan, and Morgan Stanley, all of which are actively involved in managing the process. Supporting them are a group of bookrunners, consisting of BofA Securities, Citigroup, Evercore ISI, Jefferies, UBS Investment Bank, BNP PARIBAS, Bernstein, and HSBC. Adding to the lineup are co-managers, including Baird, BMO Capital Markets, Deutsche Bank Securities, Piper Sandler, Stifel, William Blair, Telsey Advisory Group, Williams Trading, Academy Securities, Independence Point Securities, and Loop Capital Markets.
In September, the German footwear company filed for IPO, with anticipated valuation that could exceed $8 billion.
Following the IPO, L Catterton, the private equity group backed by French billionaire Bernard Arnault and luxury goods empire Louis Vuitton Moet Hennessy (LVMH), will possess an 82.8% ownership interest in Birkenstock and wield the predominant share of voting power among its outstanding shares.
In its regulatory filing, Birkenstock reported €1.24 billion (approximately $1.33 billion) in revenue for fiscal 2022, which concluded on September 30, along with €187.1 million in profit. Additionally, for the six months ending on March 31, the company generated revenue of €644.2 million, up from €542.6 million in the previous year’s corresponding period, and a profit of €40.21 million, compared to €73.5 million a year ago.
Founded in 1774, Birkenstock experienced a change in ownership around a decade ago when the family heirs stepped aside. In 2021, L Catterton acquired a majority stake in Birkenstock in a deal that valued the company at approximately $4.3 billion. It’s worth noting that LVMH boasts ownership of 75 prominent fashion and cosmetics brands and became the first European company to achieve a $500 billion valuation.
Arnault, with an estimated net worth of $195.2 billion, currently ranks as the second-wealthiest individual globally, trailing only Tesla CEO Elon Musk.
Information for this briefing was found via the sources and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
