Birkenstock will hope Barbie boost will help propel it to top of price range for NY listing
- Price range set for Birkenstock listing on NYSE of between $44 and $49 per ordinary share.
- This would give the company a valuation of up to $9.2 billion, higher than initial estimates.
- Around 32.26 million shares will be sold in the IPO to raise $1.58 billion, but more could be sold if offer is over-subscribed.
- Shares will be listed under the symbol “BIRK, with the IPO expected during the week beginning 9 October.
Susannah Streeter, head of money and markets, Hargreaves Lansdown:
“As fashion fans and scriptwriters have jumped feet first into the Birkenstock brand, the company’s shares have been set at a price range which could see the company valued at more than $9 billion, higher than originally forecast. The sandals once famous for their hippy associations, with an emphasis on foot friendly comfort, are now chic essentials for the super-stylish and have been given extra Hollywood gloss by being featured in the Barbie movie. By breaking into new fashion circles, while maintaining the iconic design, sales have surged and clearly the company wants to capitalise on being in the film and fashion spotlight.
Birkenstock’s step is another sign that the IPO engine is whirring back to life after an 18-month downturn. However, the volatile path of companies with high-profile recent listings, such as Arm and Instacart, highlights that investor sentiment is still highly sensitive, particularly given the realisation that high interest rates are set to linger. So, despite the heady ambitions, Birkenstock may still end up listing at a mid, or lower price in the range, regardless of all the publicity.
Fashionistas can be fickle and while Birkenstock may be basking in rays of popularity right now, it’s going to have to run fast to keep up in the stylish stakes. Counterfeit goods could also cause the company to lose its footing in the fast-moving fashion environment. The company has flagged competition from knock offs as a risk in its prospectus. The worry is that if too many fake products flood the market, not only could that affect sales, it could also affect the prestige tag of the brand, and push it out of fashion. As this is an US listing, HL clients cannot take part in this IPO. However once listed and enabled for UK settlement, clients will be able to trade on the HL platform.’’
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