Birkenstock’s IPO has disappointed investors and investors. Will the turning point come on the second trading day?
• Birkenstock experiences disaster on IPO day
• Weak market environment for fashion stocks
• Was demand overestimated?
An issue price in the middle of the targeted range, an initial price that was eleven percent lower and ultimately a discount of almost 13 percent on the first day of trading: Birkenstock’s IPO was a debacle. Companies and investors imagined things differently.
Birkenstock shares on the second day of trading
Even on the second day of trading, the issue price seems to be considered significantly too ambitious for most market participants: the price on Thursday remains far away from the 46 US dollars for which Birkenstock shares were sold to investors at the IPO: In the NYSE After trading, the shares of the traditional sandal manufacturer ultimately fell by 6.57 percent to $37.56.
Stock market environment underestimated?
In the aftermath of the events, experts try to explain the disappointing stock market debut. Apparently Birkenstock overestimated the demand for shares – also as a result of the hype caused by the Barbie film, in which the leading actress temporarily wore sandals from the German manufacturer. This already became clear when the issue price was conservative at $46; the original target was up to $49. In addition, the climate for IPOs in the fashion sector is not the best, especially with economic concerns and tighter consumer budgets, according to dpa-AFX.
The fact that Birkenstock has a solid, historically grown business and operates profitably has apparently not convinced investors in the long term. According to CNBC, there was already dissatisfaction in the run-up to the IPO that the valuation was based on earnings before interest, taxes, depreciation and amortization (Ebitda) and not on net profit.
It remains to be seen whether the first day of trading will set the tone for Birkenstock’s stock market history.
Editorial team finanzen.net