Birkenstock IPO: Debacle in New York - financial expert analyzes the disaster

Birkenstock IPO: Debacle in New York - financial expert analyzes the disaster

According to a report from www.volksstimme.de, the traditional sandal manufacturer Birkenstock experienced a debacle during its IPO in New York. The share fell almost 13 percent below the issue price on the first day of trading.

The downward trend continued on the second day. The issue price was $46, but the first price was more than ten percent lower at $41. At the end of the trading day the price was $40.20, almost 12.6 percent less. On the following trading day, the price fell by another three percent to $39.

The reasons for this failure are varied. On the one hand, demand could have been underestimated, and on the other hand, the valuation of earnings before interest, taxes, depreciation and amortization (Ebitda) could have been criticized. This caused the market to trim the valuation itself.

However, this debacle is not an isolated incident. Other companies like Uber and Instacart have experienced similar mishaps with their IPOs.

As a financial expert, I analyze the impact of this IPO on the market and the financial industry. An unsuccessful IPO can affect investor confidence in the company and the market as a whole. It may lead to a reduction in investor interest in similar companies and IPOs. In addition, the valuation of the company itself can be influenced, which can have an impact on potential investors and business partners.

When it comes to Birkenstock, this negative IPO could cause the company to rethink or adjust its growth plans. In addition, the planned use of the proceeds from the IPO to reduce debt could be affected.

It remains to be seen how Birkenstock will develop after this failure and whether investor confidence can be restored.