U.S. IPO Weekly Recap: Birkenstock Launches Its Billion-Dollar IPO As Fall Pipeline Builds

Just one small issuer and two blank checks went public this past week, though the calendar got a billion-dollar boost.Sandal maker Birkenstock (BIRK) launched its $1.5 billion IPO on Monday morning, which would be one of the largest consumer discretionary IPOs of the past two decades. Profitable and growing with a well-known brand, Birkenstock shares some similarities with the year’s other successful, very large listings.The week’s sole new listing, specialty grocer Maison Solutions (MSS) raised $10 million at a $74 million market cap. The company operates a network of four center-satellite stores in Los Angeles County, California, offering traditional Asian food and merchandise with a particular focus on Asian-American communities. After popping 120%+, Maison Solutions finished the week up 83%.

A few decent-sized IPOs joined the pipeline this past week, led by two that plan to raise $100+ million: pharmacy services provider Guardian Pharmacy Services (GRDN) and air transport company PHI Group (ROTR).

This past week, we released our 3Q reports on the Big Four in the IPO market and the most active IPO law firms. We also updated our reviews of the 3Q23 US and global IPO markets, where we cover activity over the past quarter, IPO performance, our outlook going forward, and more.

IPO Market Snapshot

The Renaissance IPO Indices are market cap weighted baskets of newly public companies. As of 10/5/2023, the Renaissance IPO Index was up 23.1% year-to-date, while the S&P 500 was up 12.3%. Renaissance Capital's IPO ETF (IPO) tracks the index, and top ETF holdings include Kenvue (KVUE) and Airbnb (ABNB). The Renaissance International IPO Index was down 20.9% year-to-date, while the ACWX was up 3.2%. Renaissance Capital’s International IPO ETF (IPOS) tracks the index, and top ETF holdings include Kuaishou and Porsche.

Week Ahead:

Birkenstock Holdings' billion-dollar IPO is currently the only deal scheduled for the week ahead, although some small issuers may join the calendar late.Birkenstock plans raise $1.5 billion (67% secondary) at an $8.7 billion market cap, making it one of the largest consumer discretionary IPOs of the past two decades. Cornerstone investors have indicated on nearly half of the offering. The 250-year old sandal maker has developed a portfolio of "footbed"-based products, offering over 700 silhouettes. Birkenstock is pitching a combination of profitability and growth, along with widespread brand recognition. Despite its robust fundamentals, the company is coming public against a backdrop of weak aftermarket trading from recent large IPOs.

Birkenstock’s IPO will make it the first large issuer of the 4Q. To read more about what happened last quarter and what we expect for this quarter, check out our quarterly content for the 3Q:

Street research is expected for five companies in the week ahead, and one lock-up period will be expiring.

IPO Market Snapshot

The Renaissance IPO Indices are market cap weighted baskets of newly public companies. As of 10/5/2023, the Renaissance IPO Index was up 23.1% year-to-date, while the S&P 500 was up 12.3%. Renaissance Capital's IPO ETF (IPO) tracks the index, and top ETF holdings include Kenvue (KVUE) and Airbnb (ABNB). The Renaissance International IPO Index was down 20.9% year-to-date, while the ACWX was up 3.2%. Renaissance Capital’s International IPO ETF (IPOS) tracks the index, and top ETF holdings include Kuaishou and Porsche.

Original Post

Editor's Note: The summary bullets for this article were chosen by Seeking Alpha editors.