German footwear brand Birkenstock has begun trading stock in New York in a milestone move. Shares opened at $41, about 11% lower than what the company aimed for in its initial public offering.The German sandal maker Birkenstock debuted on the New York Stock Exchange on Wednesday with an initial share price of $41 (€38.71).

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The opening share price was about 11% lower than its initial price of $46 set Tuesday, and below the range of $44 to $49 expected just a week ago.

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Founded in 1774, the company was run by the same family until 2013 and the stock flotation marks a new departure.

What we know about the sale

The floatation comes two years after the Birkenstock heirs sold a majority stake to a private equity group linked to luxury conglomerate LVMH and its billionaire boss Bernard Arnault.

The conglomerate will retain control of Birkenstock after the Initial Public Offering (IPO), which raised just under $1.5 billion.

A total of 32.26 million ordinary shares were being made available in the company's initial public offering, trading under the symbol BIRK.

The overall valuation for the company stood at $8.6 billion.

What we know about Birkenstock

The footwear maker has shed its unfashionable image, to become such a firm fashion favorite that it featured in the recent runaway blockbuster movie "Barbie."

The company started its life with just one shoemaker — Johannes Birkenstock — in the German village of Langen-Bergheim in 1774, eventually becoming a shoemaker dynasty.

Birkenstock prides itself as the inventor of the comfortable "footbed," making cork-soled sandals that were once associated with hippies and sock-and-sandal-wearing Germans.

However, it has increasingly grown into a fashion accessory, collaborating with high-end brands such as Dior and Manolo Blahnik.

rc/ab (AFP, AP)

(The above story first appeared on LatestLY on Oct 11, 2023 11:50 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).