Have you ever had a hankering to wear really ugly shoes while day trading? Well now you can, with the launch of Birkenstock’s IPO on Wednesday, October 11, 2023. The company launched at $41 after the IPO had priced at $46, indicating low demand (which I could have told you based on the appearance of the shoes). The offering raised $1.48 billion for the company, which is the good news, but the bad news is the stock closed at $40.20, down 12.61%.
After a slump in 2022 the stock market is starting to come out of hibernation. We’ve had a couple of successful IPOs recently including ARM and Instacart, so I’m not too worried about Birkenstock’s IPO slumping. They may have just priced their offering on the high side in a cash grab. We have a couple of very exciting companies looking to go public including Stripe and Reddit. I feel like tech is in the air this Fall season.
From Birkenstock to Instacart: IPOs are in a rut