Birkenstock Prices IPO at $46 a Share
German shoemaker provides first big test of new-issue market since a trio of marquee offerings last month
German shoemaker Birkenstock priced its initial public offering at $46 a share, setting up the next big test of the new-issue market when the stock begins trading Wednesday.
Birkenstock and its underwriters chose a price near the middle of the targeted range, choosing to play it safe given choppy markets, people familiar with the matter said.
The company and its private-equity owner planned to sell roughly 32 million shares in the offering at a price between $44 and $49.
At the IPO price, the trendy shoe company commands a market value of about $8.6 billion.
It is the first buzzy listing to test the new-issue market since a trio of marquee offerings last month. How it trades in the days ahead could help determine the tone of an IPO market that has shown signs of life after a long period of quiet.
The stock is set to start trading on the New York Stock Exchange on Wednesday under the symbol BIRK. The offering was led by Goldman Sachs, JPMorgan Chase and Morgan Stanley.
Last month’s deals by chip-designer Arm Holdings, grocery-delivery company Instacart and marketing-automation platform Klaviyo all priced at the high end or above expectations and their stocks initially rose. But in subsequent trading sessions they struggled to maintain their gains. Instacart’s stock is now down roughly 10% from its IPO price, while the other two remain above.
Some fund managers said that, as well as concerns about the health of the U.S. consumer, influenced their view on Birkenstock’s worth when it came to putting in orders for the IPO. Household spending remains robust for now, but high interest rates have some investors worried.
Stock prices have swung in recent weeks, with technology companies falling more than broader indexes. Last month signaling by the Federal Reserve that interest rates are likely to remain higher for longer also spooked some traders. Last week, the Dow Jones Industrial Average posted its worst loss since March. Major indexes remain higher for the year, with the tech-heavy Nasdaq Composite up roughly 30% since the end of 2022.