Birkenstock’s IPO expected to post a 17 percent loss of $1.6 billion: Which properties are currently losing a lot of value

Birkenstock’s IPO in the US is taking shape. The traditional shoe manufacturer wants to be worth a maximum of ten billion dollars at its debut. However, recent IPOs of other companies in New York have not brought much joy to investors.

Birkenstock’s IPO in New York is expected to raise $1.6 billion for the sandal maker and its majority shareholder. Birkenstock has set the price range for the issue price of its shares at $44 to $49. At the low end, the share placement would still be worth more than 1.4 billion dollars (more than 1.3 billion euros). In total, Birkenstock would be worth around ten billion dollars at the start of the stock market, according to the updated prospectus published on Monday.

Main owner company L Catterton, which is linked to luxury group LVMH and its billionaire boss Bernard Arnault, will offer about two-thirds of the papers. Birkenstock itself could receive up to more than $520 million. The company wants to use most of the money to reduce debt.

Major shareholder wants to retain control

L Catterton will retain control of Birkenstock after the IPO. According to the information, Norway’s sovereign wealth fund, T.Rowe Price investment company and Henry Ellenbogen’s investment company have also shown interest in larger share blocks. According to information from the financial service Bloomberg, Birkenstock is aiming for its stock market debut next week.

With the plans, Birkenstock is responding to a wave of activity on the American stock market after more than a year of standstill. In the coming weeks, chip designer Arm and delivery service Instacart, among others, went public. Arm stock recently traded well below its current highs, and the Instacart price fell below the issue price.

According to the company, the origins of Birkenstock date back to 1774. Nearly 250 years ago, shoemaker Johannes Birkenstock laid the foundation for “a shoemaking dynasty.” The company describes itself as the “inventor of the footbed”. The sandals have long since broken away from their former eco-slipper image; In recent years they have increasingly developed into a fashion accessory, also through collaborations with high-end brands such as Dior and Manolo Blahnik. (sda/awp/dpa)