Birkenstock attracts Norwegian wealth fund to US$1.6 billion IPO
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BIRKENSTOCK Holding has set terms for an initial public offering (IPO) that could raise as much as US$1.6 billion, pushing ahead with the latest major test of demand for new listings.
The German footwear maker is marketing 10.8 million new shares at US$44 to US$49 apiece, according to a filing on Monday (Oct 2). Its controlling shareholder, private equity firm L Catterton, is offering 21.5 million shares at the same price.
The Norwegian sovereign fund and T Rowe Price Group veteran Henry Ellenbogen’s Durable Capital Partners have expressed interest in buying as much as US$300 million of stock in aggregate, the filing indicated. Billionaire LVMH chairman Bernard Arnault’s family holding company, which has already invested in Birkenstock, may buy as much as US$325 million of shares.
Birkenstock plans to use proceeds from the offering to repay debt. Bloomberg News reported last week that Birkenstock was preparing to kick off its road show in a major test of demand for new listings. It is tentatively planning to price the offering on Oct 10 and start trading on Oct 11, people with knowledge of the matter said.
The company is moving ahead after investor enthusiasm started to wane for some blockbuster listings in recent weeks. UK chip designer Arm Holdings and grocery delivery startup Instacart, which both priced their listings at the top of their price ranges or higher, have slipped towards their issue prices or below amid a broader market retreat.
Vietnamese Internet startup VNG last month delayed its plans for a US listing after being advised to hold off until market demand improves, Bloomberg News has reported. Others are still doing well, with marketing and data automation provider Klaviyo trading well above its IPO price.
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Birkenstock’s IPO comes more than two years after L Catterton and Arnault’s family investment company acquired a majority stake in the business at a valuation of about US$4 billion.
The offering is being arranged by banks including Goldman Sachs Group, JPMorgan Chase & Co and Morgan Stanley. Birkenstock plans to list its shares on the New York Stock Exchange under the symbol BIRK. BLOOMBERG
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