Birkenstock shares edge higher premarket after underwhelming debut
Investing.com -- Shares in Birkenstock (NYSE:BIRK) inched slightly higher in premarket U.S. trading on Thursday, pointing to a muted bounce back for the stock after it slumped in its Wall Street debut in the prior session.
The 250-year old German company known for its trendy suede sandals saw its shares slip by 12.61% to $40.20 on Wednesday. The stock had begun trading at $41 following an initial public offering that had priced it at $46, the midpoint of the firm's indicated range of $44-$49.
Based on 32.3 million shares sold, the IPO had raised $1.48 billion, with much of the proceeds going to L Catterton, the private equity group backed by billionaire Bernard Arnault and luxury goods giant LVMH. L Catterton was set to retain an 83% stake in the group. Birkenstock, meanwhile, was valued at around $9.3B on a fully diluted basis.
The firm was the fourth major business to hold a public debut in the U.S. in the last four weeks. The crush of flotations initially spurred enthusiasm for a recovery in the recently dry IPO market, but these hopes have been tempered after the newly-listed shares gave up most of their early gains.
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