Birkenstock IPO in New York - financial expert analyzes the debacle and its effects

Birkenstock IPO in New York - financial expert analyzes the debacle and its effects

According to a report by www.mz.de, the traditional sandal manufacturer Birkenstock suffered a serious setback in its IPO on the New York Stock Exchange. The share fell almost 13 percent below the issue price on the first day of trading.

This example shows that even established companies have no guarantee of a successful IPO. Despite a solid business model and profit figures, Birkenstock's share placement was met with little enthusiasm among investors. This could indicate that the climate for fashion IPOs is currently difficult, particularly due to economic concerns and tighter consumer budgets.

A similar debacle also befell other companies such as the ride-hailing company Uber and the delivery service Instacart, whose share prices were also below the issue prices.

Despite the failed IPO, Birkenstock still achieved a placement of almost 1.5 billion dollars, two thirds of which went to the main owner L Catterton. Birkenstock intends to use the proceeds from the IPO to reduce debt while L Catterton retains control of the company.

The reasons for the failure of Birkenstock's IPO are varied and can be attributed to an excessive valuation based on EBITDA instead of net profit, as well as to general market sentiment.

It remains to be seen whether Birkenstock can recover from this setback and demonstrate its long-term growth potential.