We were just starting to see some signs of life for companies looking to go public. Various initial public offerings put forward in recent months have gone surprisingly well. For Birkenstock, which will go public under the ticker symbol BIRK at a $10 billion market capitalization, that is great news. However, it is probably too soon for potential BIRK stock investors to celebrate.
That’s because some concern is growing in the markets around how the financial regulatory plumbing will be able to handle any new listings. A government shutdown would directly affect the staff of key government agencies, including the Securities and Exchange Commission (SEC). Representatives have said that the SEC’s staff could get cut down to less than 10% of usual size in a shutdown, delaying any new requests for IPOs, mergers or other filings.
Investors looking for another big IPO day pop may be getting nervous. Let’s dive into whether there’s something to be worried about, and whether the Birkenstock IPO will go according to plan.
Questions About BIRK Stock IPO Circulate
Birkenstock’s management team and advisors on the IPO believe that this offering will go according to plan. Thus, at this present moment, it appears investors can take a deep breath.
That’s likely due to the fact that most of the filings and paperwork required prior to this IPO have been completed. Additionally, with a date set within the next two weeks, a fair assumption would be that the SEC would prioritize this IPO over other prospective ones further down the road.
For companies looking to go public in the coming months, it’s possible that this government shutdown could delay things.
However, the back-end processes in place for a company to go public can generally take quite some time. This means retail investors may not feel the impact of any delays. Thus, for the average investors, things are likely to continue to appear to operate as normal.
Of course, something could always come up to create a scenario in which the Birkenstock IPO gets delayed. Birkenstock’s team acknowledged this. But for now, if I were forced to bet, my money would be on this IPO taking place in October.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
