(News Bulletin 247) – The German sandal brand is targeting a fundraising of $1.58 billion during its IPO on the New York Stock Exchange.

We know a little more about the terms of the highly anticipated Birkenstock IPO in New York. The sandal manufacturer, whose origins date back to 1774, indicated that it planned to raise $1.58 billion for this IPO.

On this occasion, approximately 32.26 million shares of the group held by the L Catterton investment fund, associated with LVMH, will be sold in a price range between 44 and 49 dollars, according to a document filed with Securities. and Exchange Commission (the SEC), in other words the American stock market policeman. In detail, Birkenstock will sell approximately 10.8 million shares, and L Catterton approximately 21.5 million shares.

A valuation of $9.2 billion

Financière Agache (the Arnault family holding company) has expressed interest in purchasing up to $325 million in common stock, as has one or more funds managed by Durable Capital Partners LP and Norges Bank Investment Management (a division of Norges Bank ) who have indicated for their part that they wish to purchase up to $300 million in shares.

The company is targeting a valuation of $9.2 billion, a figure close to what was mentioned in the press when the IPO project was announced.

The L Catterton fund submitted its application last September for an listing on the New York Stock Exchange.

A similar fate to Crocs?

Birkenstock will soon take its first steps on the New York Stock Exchange, with its popularity at its highest. Freed from their old-fashioned image, these sandals have found a new lease of life. The brand has collaborated with big names in luxury such as Dior, Valentino and Givenchy.

Last but not least marketing operation, Birkenstock appears in this summer’s hit film, Barbie. The outfits worn by actress Margot Robbie have become iconic fashion pieces, including the Arizona model in Light Rose suede leather from the Birkenstock brand.

“The timing of this product placement couldn’t have been more perfect: it not only capitalizes on the marketing buzz surrounding this summer’s blockbuster. It also draws attention again to the German shoe manufacturer just before its IPO planned in the United States”, the German economic daily Handelsblatt reported this summer.

Will the new popularity of Birkenstocks spread to the floors of the Stock Exchange? In any case, it is the bet of LVMH which hopes to take advantage of the craze for this winning return, like Crocs, a brand which had also suffered from a very outdated image before winning the hearts of fashion addicts. Here too, collaborations with renowned designers have greatly contributed to restoring the image of these plastic shoes.

“The stories of Birkenstock and Crocs are quite similar. Both brands have gone from fashion laughingstocks to the mainstream in recent years. So much so that actress Margot Robbie wore a pair of the famous shoe in the Barbie blockbuster “Birkenstock certainly hopes to be able to benefit from the same trajectory of the stock price”, indicated Antoine Fraysse-Soulier, head of market analysis for eToro.