Renowned German footwear brand Birkenstock has filed for an initial public offering (IPO), deciding to tread the well-warn financial path to New York. The European shoemaker’s decision makes it the latest in a string of European enterprises turning towards the United States as terrain for fundraising in the stock market.
As per the filing submitted to the U.S. Securities and Exchange Commission on Tuesday, Birkenstock went on record to express their intention to list on the New York Stock Exchange, adorning the symbol “BIRK”. However, they have kept their cards close to their vest, sharing neither the target share price nor any proposed timeline for the IPO.
While the details regarding Birkenstock’s valuation remain undisclosed in their filing, there have been reports suggesting the company seeks a valuation northwards of $8 billion.
The company’s filing indicates revenue growth of 19% in the six months leading up to the close of March, comparing it to the same period from the 2021-22 fiscal year. On the flip side, it cites a 45% dip in net profits, attributing this downward trend to the inflationary surge affecting both labour and material costs.
Birkenstock dates back to 1774, origination from a German cobbler named Johannes Birkenstock, as marked in the church archives of Langen-Bergheim. In 2021, the Birkenstock clan parted with a majority stake in the company, selling it off to L Catterton, the luxury brand kingpin’s LVMH-backed private equity firm. The Birkenstock brothers, Christian and Alex, however, chose to retain a minority stake.
The impending IPO serves as a significant landmark for the footwear sensation, as Birkenstock now finds its name among other high-profile European companies with public offering ambitions in America. British chip manufacturer Arm, for instance, is on the verge of a major IPO on the Nasdaq this week.
These IPOs follow a rather disappointing 18-month dip in the IPO market performance. The global central banks, grappling with stifling inflation, have escalated interest rates, leading to decreased investor interest in riskier assets. Instacart, a US grocery delivery organization, has also expressed plans to list on the Nasdaq soon, albeit at a downgraded valuation.
Craig Erlam, senior market analyst at Oanda, points to the United States as taking the lead in the IPO recovery process, and added that other financial heavyweights such as London have much to do to compete in the days to come.
The move by Birkenstock, according to Susannah Streeter, head of money and markets at Hargreaves Lansdown, signals a revival of the IPO engine following an 18-month deceleration. The anticipation of the interest rate hiking cycle culminating also seems to fuel renewed confidence in the market.