Birkenstock flops, down 20% from IPO price

Klaviyo

13/10/2023 16:24

** Birkenstock's  BIRK.N  shares falling 2.6% to $36.59 on
Fri, extending losses for third straight session after German
sandal seller's bleak Wall Street debut
    ** Shares on Fri fall as low as $36.50, nearly 21% below its
IPO price
    ** BIRK on Weds tumbled nearly 13% below the $46 IPO price,
raising ~$1.5 bln, after co aimed to price the deal for as much
as $49
    ** With loss on Fri, Birkenstock has market cap of roughly
$6.9 bln, or about $7.4 bln on fully diluted basis
    ** This compares to the $4.35 bln at which L Catteron, U.S.
PE firm backed by French billionaire Bernard Arnault and his
luxury goods empire LVMH  LVMH.PA , paid to acquire a majority
stake in the shoemaker in 2021
    ** Birkenstock's flop comes on heels of weak performances
from chip designer Arm Holdings  ARM.O , grocery delivery app
Instacart/Maplebear  CART.O  and marketing automation firm
Klaviyo  KVYO.N 
    ** Some investors and capital markets bankers hoped these
marquee names would ignite a resurgence in new listings after
volatile markets stymied demand for IPOs in past two years 
    ** Shares of ARM and CART also dropping on Fri, and both now
trading below their IPO prices. In contrast, KVYO edging higher
on the session and is the only stock among the four major
companies that has not breached its IPO price

 (Lance Tupper is a Reuters market analyst. The views expressed
are his own)
 ((lance.tupper@thomsonreuters.com
lance.tupper@tr.com 1-646-279-6380))