Shares of German sandal maker, Birkenstock, will make their debut under the 'BIRK' ticker on the New York Stock Exchange today. The company priced the initial public offering at $46 a share, the middle of the range it had earlier anticipated, raising about $1.48 billion and valuing the company at roughly $8.6 billion.

A total of 32.25 million shares will be sold through this offering, of which about 10.75 million are by the company and roughly 21.5 million shares are being sold by its owner and largest shareholder—private equity fund L Catterton that is backed by LVMH-Moet Hennessy Louis Vuitton (LVMUY) chair Bernard Arnault.

Why Does It This IPO Matter?

There are a number of reasons why the Birkenstock IPO has market watchers excited.

Iconic Brand

The earliest mention of Birkenstock in relation to shoes can be found almost 250 years ago in church archives in Germany. That means technically, Birkenstock's association with footwear predates American independence.

But being around for so long has not really dented the brand, which has seen particular success in recent years, with gross profit jumping 72% in fiscal year 2022 over the prior year. A prominent place in this year's blockbuster hit Barbie has only added to its appeal for customers and investors alike.

Support From Big Names In Luxury

Birkenstock's F-1 filing with the U.S. Securities and Exchange Commission also lists Bernard Arnault's son Alexandre Arnault, as a nominee to Birkenstock's board of directors.

In 2021, L Catterton acquired a controlling stake in Birkenstock. At the time, the deal valued the company at about $4.85 billion, Reuters reported. Financière Agache, the Arnault family office, also picked up at stake in Birkenstock, though it has expressed a desire to purchase up to $325 million worth of stock in the IPO as well.

U.S. IPO Market At An Inflection Point

Birkenstock's offering comes at an inflection point in the wider IPO market, which has been sluggish amidst higher interest rate environments and rampant inflation. Despite blockbuster listings of Arm (ARM) and Instacart (CART), there may be little evidence to suggest that 澳洲幸运5官方开奖结果体彩网:the tide has turned for the U.S. IPO m🌞arket which h▨as been sluggish at best this year. So analysts will be paying close attention to Birkenstock's success or lack ther♒eof.