Birkenstock IPO: fit or flop?
Sandal firm Birkenstock is the latest high-profile listing to put the spotlight on the IPO market. IGTV financial analyst @AngelineOng takes a look at how Birkenstock’s upcoming listing is likely to perform.
(Video Transcript)
Birkenstock eyes IPO for debt repayment, expansion
Now, it used to be that when anyone said 'Birkenstock', you'd think, oh, that niche sandal company. I quite like the idea of Birkenstock, but if you're like me, it's really painful to wear. Others love it because it's really comfortable.
Fast forward from 1774 and the sandal company is set to debut. Birkenstock is closing plans to sell at least 32 million shares priced between $44 and $49 apiece, which would raise around $1.58 billion at the top end of estimates. Some of that will be to pay down debt, the rest to expand.
Now, the thing is, it comes at an interesting time. Other high profile companies like ARM, just looking at the shares here: Instacart, spin-off Colosa, have gone public recently, have seen their share prices slump.
Barbie in Birkenstocks was a neat trick
And in all that cost-of-living crisis, consumers still cutting back on life to hounds like premium sandals could be a headwind. And if you look at this chart, global shoe consumption suffered during the lockdown and then picked up. But there's a clear downward trend since then.
One thing that Birkenstock does have on its side is that Covid turbo-charged the casual dressing trend. It's also been really smart in its product placement, having Margaret Robbie in Barbie wear a pair of Birkenstocks.
And, like Crocs, Birkenstock also taps into the health and sustainability theme. So perhaps those factors can help Birkenstock put its best foot forward.
Find out more about how to buy Birkenstock shares
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