Birkenstock filed for its IPO on Monday to the New York Stock Exchange under ticker “BIRK”, and planned to offer 10.75 million shares between $44 to $49. The 2.5-century-old German footwear brand could raise almost $1.6 billion, which will result in the over $9 billion valuation.
Meanwhile, many wonder if BIRK could give a rise to the IPO wave, as the US IPO market went gentle in 2023 until ARM’s $52 billion IPO last month, which is probably at least 5 times of BIRK valuation. BIRK’s IPO would be considered as the third highest value in this year after Instacart (CART) at $9.8 billion, while Cava Group (CAVA) would be the last at $2.5 billion valuation.
In the view of price performance, the british chip designer ARM is the worst with 12% loss from the first trading day, while Mediterranean restaurant chain CAVA and grocery delivery service CART, both gain over 30% after the launch at the exchange in June and September, respectively, this year.
On the other hand, prices of shoe makers such as Crocs, Inc.(CROX) and Nike Inc.(NKE), dropped by over 22% this year, while both P/E ratio is at around 8 and 29, respectively.
BIRK has a very interesting history. Once called “Jesus Sandals,” it recently gained popularity across the globe. The Flintstone feet, the anti-fashion, the ugliest of 2019, but originally designed as a ‘footbed’ for comfortability and durability, along with an endorsement from many celebrities for decades makes Birkenstock becoming brand of the year in 2022.
Furthermore, some Asian see brand name products as an investment, which might boost the second hand market price and keep the footwear demand high. Birkenstock is even popular in Thailand despite the opposite climate (hot, damp and floody) to its home country, and many could substitute with simple flip-flops or slippers.
