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Levi Strauss valued at $6.6 billion, IPO priced at $17/share

The company, which claims to have invented blue jeans in the 19th century and is named for the man who founded it in 1853, is set to debut on the New York Stock Exchange on Thursday under the ticker "

Reuters 

Levi Strauss
Levi’s is expected to start trading on the public markets on Thursday for the second time in its 165-year history

 & Co fetched a higher price than expected in its (IPO) on Wednesday, selling $623.3 million in shares as the U.S. maker looks to return to the stock market after 34 years as a family-owned company.

The success of the underscores the diverging fortunes of over the last few years. Vendors like with consistently popular offerings have flourished as they reach more shoppers through online channels, while tens of thousands of brick-and-mortar stores have closed under pressure from such as Amazon.com Inc.

With the stock market hovering near all-time highs, said it priced its at $17 share, just above its target range of $14 to $16, valuing the company at about $6.6 billion.

The company, which claims to have invented blue in the 19th century and is named for the man who founded it in 1853, is set to debut on on Thursday under the ticker "LEVI".

In the IPO, $462.4 million worth of stock was sold by existing stockholders and the company sold $160.9 million in shares.

Levi is setting the stage for a bumper year for IPOs that will also feature the likes of ride-hailing startups and later this year. IPOs in the U.S. amassed to $60.8 billion in 2018, up 23 percent from a year earlier and the highest since 2014, according to data provider

The popularity of is surging, driven by new styles such as high-waist and pinstriped Earlier this month and posted strong results boosted by sales.

Levi reported net revenue of $5.8 billion for the 12 months ending Nov. 25, up from $4.9 billion the year before. Net income was $285.2 million, only slightly up from $284.6 million a year earlier.

The Haas family, the descendants of Levi Strauss, will sell a small chunk of their shares and will continue to control the company. They took it private in 1985 in a $1.6 billion leveraged buyout. Levi first went public in 1971.

Founder Levi moved to in 1853 during the gold rush, opening a dry goods business.

The company he founded has laid claim to inventing blue jeans when Strauss and a partner in 1873 received a patent on using rivets to make clothes, a practice that still distinguishes the company's jeans. Over the years the company added new lines, including the office casual Dockers brand.

The proceeds from the will boost Levi Strauss' coffers to invest in range.

Goldman Sachs, JPMorgan, and are among the of the IPO.

 

 

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

First Published: Thu, March 21 2019. 07:25 IST
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