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· Posted on
February 21, 2024

Birkenstock Holding's needs a pedicure URGENTLY after its rocky debut on the NYSE

Immediately after the listing on the New York Stock Exchange, Birkenstock Holdings' share price dropped almost 11%.

What's the key learning?

  • This is the worst opening for a listing of US$1 billion or more in more than two years.
  • There are many components to nail a successful IPO - but setting the right valuation is arguably the most important.
  • Before the public listing, investment bankers will try to determine the value of the company and the price of each share.

👉 Background: Birkenstock Holdings is the company behind the iconic Birkenstock sandals. The company was founded back in 1775 and were mainly focused on making shoes really comfortable. But over the past decade, Birkenstocks have gone from the shelves of podiatrist-recommended-shoe-shops to the runways of Paris.

👉 What happened: After the success of the past few years, Birkenstock Holdings listed on the New York Stock Exchange (NYSE) this week. But immediately after the listing, its share price dropped almost 11%.

👉 What else: This makes it the worst opening for a listing of $US1 billion or more in more than two years. This really ain't nothing to stomp home about..

What's the key learning?

💡There are many components to nail a successful IPO - but setting the right valuation is arguably the most important.

💡Before the public listing, investment bankers will try to determine the value of the company and the price of each share. For Birkenstock, they listed the company at a price of $46 USD per share.

💡But shortly after listing, the share price dropped to nearly $41 USD per share - which means the investment bank overcooked the goose. And this sudden drop can really hurt the momentum of a business - so Birkenstock Holdings has a lot of work ahead of it.

‍

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