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Birkenstock has revealed its filing for an IPO in New York, signaling a resurgence in the US market for listings after a long period of decline.
The popular German sandal maker is targeting a valuation of over $8 billion in its IPO, as per insiders. After filing a confidential prospectus to regulators in July, the company made its public filing on Tuesday, paving the way for listing on the New York Stock Exchange in early October.
According to insiders, L Catterton, the owner of Birkenstock, is aiming to list the company during the week starting October 9.
A potential IPO for Birkenstock follows in the footsteps of other high-profile listings, such as UK chip designer Arm and grocery app Instacart.
Oddity Tech, an online beauty retailer, also went public through an IPO on the Nasdaq exchange in July, marking the second IPO for one of L Catterton’s portfolio companies in recent months.
The positive response to Oddity Tech and other summer IPOs has restored confidence among dealmakers and potential IPO candidates after a prolonged period of fundraising challenges.
The upcoming Arm listing has further fueled this confidence, with the offering expected to raise up to $4.9 billion for its owner SoftBank. Demand for Arm’s IPO has been strong, leading order books to close a day early on Tuesday due to oversubscription.
In the six months ending March 31, Birkenstock reported revenues of $644 million, a 19% increase compared to the previous fiscal year. However, net profit declined by 45% to $40 million due to higher operating expenses.
The company has been focusing on selling a greater percentage of its footwear directly to consumers rather than through retailers, which has resulted in increased costs. Additionally, higher wages and a weaker US dollar have negatively impacted profits.
Although Birkenstock has a rich history dating back to 1774, CEO Oliver Reichert emphasized in the company’s prospectus that it maintains a youthful and innovative spirit reminiscent of a Silicon Valley start-up.
In 2021, L Catterton, with backing from luxury fashion house LVMH, acquired a majority stake in Birkenstock, valuing the company at €4 billion. Two members of the Birkenstock family still retain a minority share.
L Catterton has chosen not to comment on the matter.
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