Birkenstock IPO: Shares fall 13 percent - Bad start for the sandal manufacturer

Birkenstock IPO: Shares fall 13 percent - Bad start for the sandal manufacturer

The traditional sandal manufacturer Birkenstock experienced a debacle when it went public in New York. The share fell almost 13 percent below the issue price on the first day of trading. The price decline continued on the second day. Companies usually try to set their issue price so that there is a positive price gain on the first day of trading - this didn't work with Birkenstock. However, the reasons for this are not clear. Maybe the price was too high or the demand was misjudged.

However, stocks that close with a loss on the first day are not uncommon. Other companies like Uber and Instacart have had similar mishaps. Both stocks started below the issue price and later recovered or fell in value.

Birkenstock generated proceeds of around 1.4 billion euros through the IPO. About two thirds of this goes to the main owner L Catterton, who is connected to the luxury group LVMH. Birkenstock plans to use the proceeds to pay off debt.

What does this mean for the market and the financial industry? Although Birkenstock's IPO did not go as hoped, it is a well-known and successful company with solid business figures. However, this setback could make investors more cautious when it comes to future fashion IPOs. Still, it remains to be seen whether this incident will have a major impact on the market.

Source: According to a report by www.weser-kurier.de