The matter is reported by dw.com (“Deustche Welle”), which writes that Birkenstock debuted on the New York trading floor on Wednesday. In the first valuation, its shares were valued at $41. That’s over 10 percent. below the issue price.
Debut flop
The issue price was $46 and was considered conservative. However, it corresponded to the company’s total valuation of USD 8.6 billion (approx. EUR 8.1 billion at the current exchange rate), the company said in a statement. Earlier, it set the share price range at $44 and $49.
It’s rather an unprecedented situation for the share price to fall below the issue price instead of rising. This means that the company and shareholders incorrectly assessed the interest in the assets – writes dw.com after the DPA agency.
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According to previous estimates, Birkenstock could raise as much as $1.48 billion from the issue of 31.2 million shares. L Catterton, the main owner (related to the LVMH group and its boss, billionaire Bernard Arnault), will retain control of the company after it goes public.
What is Birkenstock?
The company has been on the market since 1774, founded by shoemaker Johannes Birkenstock. In recent years, ecological sandals have regained their fashionable glory, including: thanks to cooperation with high-end brands such as Dior and Manolo Blahnik. In 2023, movie fans could see them in the movie “Barbie”.
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2023-10-11 20:01:45
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