Birkenstock Holding (BIRK.N) has obtained enough investor commitments, according to people familiar with the matter,

To price its U.S. initial public offering (IPO) at the top of its stipulated range and attain a $10 billion valuation. The German luxury footwear producer, according to the sources, will make a final decision on pricing its IPO at the top of its $44-to-$49-per-share range on Tuesday, ahead of its shares listing in New York on Wednesday. At the top of the range, Birkenstock would raise $1.58 billion.

The sources stressed that the discussions are fluid and asked for anonymity since the topic is private. Birkenstock did not respond to requests for comment.

Birkenstock is the fourth major company to launch a U.S. IPO in the last four weeks following those of chip maker Arm Holdings (ARM.O), 

Grocery deliver app Instacart (CART.O) and marketing automation platform Klaviyo (KVYO.N).

They priced their IPOs at the top or above their indicated range and saw their shares rally at the debut, 

Only to give up most of the gains in the following days. While shares of Arm and Klaviyo still trade above their IPO price, Instacart's stock is now worth less than its IPO value.

This helps explain why Birkenstock is not inclined to raise its IPO price range despite the strong initial investor demand.

It is already seeking a valuation that is frothier than some bigger shoe brands. It would be worth about 27 times trailing 12-month earnings before interest, taxes, 

Depreciation and amortization at the top of its range, when Nike  trades at 21 times. Birkenstock started the roadshow for its IPO last week, with some investors already lined up. Birkenstock revealed in a filing that Financiere Agache has shown interest in purchasing $325 million in shares, 

While Durable Capital Partners and Norges Bank Investment Management have expressed interest in purchasing $300 million in shares. According to the sources, once the roadshow began, growth equity investor Baron Funds put an order for $500 million in shares. According to the sources, 

around $1.13 billion in shares is likely to be accounted for between the cornerstone investors and Baron.

Birkenstock was created in 1774 in the German hamlet of Langen-Bergheim by shoemaker Johannes Birkenstock and his younger brother Johann Adam Birkenstock. After its foundation, the Birkenstock family operated the company for six generations.

The brand has been attempting to portray itself as a trendy item worn by models and celebrities. Barbie, played by Margot Robbie, donned pink Birkenstocks in the film's closing scene, which was released this summer.

L Catterton, a private equity firm backed by French billionaire Bernard Arnault and the Louis Vuitton Moet Hennessy luxury goods empire, purchased a controlling share in Birkenstock in 2021.

Following the IPO, L Catterton will own 82.8% of Birkenstock and control a majority of the aggregate voting power of the company's outstanding shares.

Disclaimer: We don,t provide any Investment advice.