Birkenstock Holding PLC (NYSE:BIRK) shares are set to stumble 5% lower after its major private equity shareholder offloaded a chunk of its stake.
L Catterton, the private equity firm that joined forces with French fashion house LVMH to buy the German footwear brand three years ago, is selling the shares.
Birkenstock said a public offering would be made of 14 million shares, worth $836.9 million at the recent $59.78 share price, with Goldman Sachs and JPMorgan leading the sale and having a 30-day option to sell up to 2.1 million further shares if there is sufficient demand.
L Catterton will still own more than 137.5 million shares, or a 73.2% stake following the disposal.
Oliver Reichert, CEO of the sandal maker, said it was "an opportunity for us to further broaden our investor base and to increase the liquidity of our stock".
L Catterton CEO Michael Chu, who remains chair of the Birkenstock board, said the firm remains "deeply committed" and will "continue to be long-term partners who have deep conviction in the company’s growth story".
The private equity firm and LVMH acquired a majority stake in the German company at a value of around US$4.4 billion in 2021 before floating the business in New York last October at a US$10 billion valuation.