Birkenstock Holding is expecting to price its initial public offering (IPO) at the top end of its range after garnering enough investor commitments to reach a US$10 billion valuation, reports revealed on Monday.
Listing at between US$44 and US$49 per share, the sandal company is expected to finalise its pricing on Tuesday, before the shares debut on the New York Stock Exchange on Wednesday, according to Reuters.
If listed at the top of the range, the German company could expect to raise as much as US$1.58 billion.
Over the last month, Instacart (NASDAQ:CART), Arm Holdings PLC (NASDAQ:ARM) and payment platform Klaviyo have all gone public at the top end or above their indicated ranges, but Birkenstock appears cautious about following suit, as some firms like Instacart (NASDAQ:CART) witnessed shares dip below their IPO value after an initial rally.
Birkenstock's approach has been bolstered by strong early investor interest with LVMH shareholder Financiere Agache expressing interest in purchasing US$325 million worth of shares, while Durable Capital Partners and Norges Bank Investment Management are considering building a stake worth US$300 million, the retailer revealed in a filing.
Growth equity investor Baron Funds reportedly placed an order for US$500 million worth of shares during the company’s IPO roadshow and these investments, along with those from cornerstone investors, are anticipated to account for around US$1.13 billion of the shares.
Birkenstock, which is currently wholly owned by L Catterton, is expected to remain under the group’s control when it IPOs, with it claiming it will maintain an 82.8% stake.