Birkenstock, a German sandal maker with a history dating back to 1774, priced its shares at US$46 ($8.6 billion) in an initial public offering (IPO) ahead of its debut on the New York Stock Exchange. This is the third largest IPO in the US this year.

The move comes some two years after PE firm L Catterton acquired a majority stake in Birkenstock for more than €4bn. The listing is seen as a strategic decision to boost its valuation and gain access to capital markets. The proceeds of the IPO will be used to repay existing loans.

Birkenstock, which has been making shoes since 1774, introduced its iconic sandals to the American market in 1966. Over the years, the company has evolved into a prominent fashion brand that has partnered with prestigious names such as Dior, Manolo Blahnik and Valentino. More recently, the Birkenstock brand has seen a surge in sales, thanks in part to its appearance in the popular Barbie movie, where Margot Robbie appeared on screen in stylish pink Birkenstocks.

Birkenstock's revenues grew from €728 million in fiscal 2020 to €1.24 billion in fiscal 2022, driven by the company's focus on its direct-to-consumer strategy, the exit of certain wholesale partnerships in key markets and an increased focus on selling higher-priced products.

In recent years, several footwear companies have gone public, including AllBirds, Dr. Martens and On Holding. On the first day of trading, Birkenstock's stock saw a 10% decline, reaching a price of $41.25 at 2:11 p.m. in New York, resulting in a market value of $7.75 billion.