The third-largest US listing of the year was completed by the German sandal manufacturer Birkenstock on Wednesday afternoon, but shares of the company fell more than 10% on their first day of trade.

After a protracted slump, the initial public offering market has just begun to pick up momentum, but Birkenstock's muted debut serves as yet another reminder that investors are still on the defensive compared to the fervor of 2020 and 2021.

All three significant IPOs—Arm, Instacart, and Klaviyo—priced last month at or over the top of their target ranges, but trading in the freshly listed companies has been erratic ever since.

Nearly 13% less than the $46 agreed upon for the initial offering price, Birkenstock ended Tuesday at $40.20 per share. The asking price was about