Birkenstock IPO: what you need to know and how to buy shares

When could the Birkenstock IPO happen?

Birkenstock has just announced a US initial public offering (IPO) on the 11 October this year.

According to Bloomberg, the German shoe company has been working closely with JPMorgan Chase and Goldman Sachs in the run-up to the IPO.¹

Birkenstock IPO: how to buy shares

1. Research Birkenstock
2. Decide if you want to trade or invest
3. Open an account
4. Search for Birkenstock
5. Open a position

If you want to buy and own Birkenstock shares, you’d open a share dealing account with us.

You can invest in Birkenstock shares as soon as it lists. Note that this could take a few hours since the company is listing in the US. This is the case for all brokers.

If you’ve placed over three trades with us this calendar year you won’t pay commission and, if not, you’ll pay £10.

To trade Birkenstock shares using derivatives, you can open a spread betting or CFD trading account. You won’t have to pay a commission when trading spread bets but with CFDs you’ll have to pay a $15 commission on all US shares.

When trading derivatives you can take a position on both rising (going long) and falling (going short) markets. You can also trade on leverage, where you open a position much larger than your initial deposit.

It’s worth noting however that all gains and losses are dependent on your total position size, meaning you could lose more than your initial outlay. It’s therefore important to have an effective risk management strategy in place.

Learn more about how to trade IPOs

What does Birkenstock do?

Birkenstock is a German shoe company best known for its unique, cork sole sandals which are specially designed to prioritise comfort and distribute the weight across the whole foot, instead of certain pressure points.

Despite being viewed as an ugly shoe back in the 1970s when they were first introduced, the brand has since grown in popularity and, according to the Guardian, was one of the most purchased fashion items in 2022.² The shoe is currently sold in over 90 countries.

Who are Birkenstock’s competitors?

Partnerships with brands such as Dior, Rick Owens and Valentino, have enabled Birkenstock to be viewed as a luxury shoe and, with that, comes a luxury price.

Many brands and fashion retailers such as O’Neil, Schu, Primark and M&S have taken the opportunity to capitalise on the popularity of Birkenstock’s iconic style and offer duplicates at a more ‘affordable’ price range.

That said, Birkenstock prides itself on the sustainability, comfort and durability of its shoes. It’s this reputation that has enabled them to maintain popularity over cheaper duplicates. In fact, last year Birkenstock’s sales exceeded expectations, despite a drop in profits, and the outlook remains positive for this year.³

See more upcoming IPOs

What's Birkenstock valued at and what could the share price be?

The company intends to sell up to 32 million shares, priced at $46 each, leading to an initial market valuation of $9.2 billion.

What’s the outlook for the Birkenstock IPO?

The outlook for Birkenstock’s IPO is optimistic among some analysts who have predicted it could be one of the most successful launches this year.

Last year, Birkenstock reported a revenue increase of nearly 30% reaching €1.2 billion ($1.3 billion), resulting in adjusted earnings of €394 million ($432 million).

To cope with the increased demand, the company has also been investing in new production sites around Germany.

All that said, economic instability and high interest rates have resulted in a very quiet IPO market this year and the success of Birkenstock’s IPO remains to be seen.

Last updated: 10 October 2023

Footnotes:

¹ Bloomberg, 2023
² The Guardian, 2022
³ Drapers, 2023