Birkenstock to raise up to $2.5b in US IPO

The news: German premium footwear brand Birkenstock will raise up to USD1.58 billion ($2.5 billion) at the top end of the price range for its highly anticipated US initial public offering.

The numbers: The company, owned by private-equity firm L Catterton, plans to sell at least 32 million shares, likely to be priced between USD44 and USD49 apiece, giving it a fully diluted valuation of about USD10 billion. L Catterton will own roughly 83% stake in the company after the listing on the NYSE.

The context: Birkenstock intends to use the proceeds of the IPO to pay down debt. The company, which last month reported a 21% increase in revenue for the nine-month period ended June 30, has shown strength against a difficult demand environment for luxury goods. Its offering comes amid a revival in IPO activity after a two-year drought, but follows mixed post-debut performances by high-profile listings including chip designer Arm and grocery delivery app Instacart.