Levi Strauss & Co announced that it has started an initial public offering (IPO) of 36,666,667 shares of its Class A common stock. The denim maker is planning to raise as much as US $ 587 million via this IPO, giving it a value of up to US $ 6.17 billion as it returns to the market after three decades.
The IPO price is currently expecting to offer 36.7 million shares priced between US $ 14 and US $ 16 per share. It has applied to list its Class A common stock on the New York Stock Exchange under the ticker symbol ‘LEVI’. Goldman Sachs & Co. and JP Morgan Securities will serve as joint lead book-running managers for the offering.
The brand is coming up with its IPO at a time when demand for denim is surging, driven by fresh styles such as highwaist and pinstriped jeans.
In its regulatory filing, Levi Strauss said the proceeds from the listing can be used for future acquisitions that will enhance its portfolio of brands, but has no immediate plans of any takeover. To attract young customers, the brand is also planning to expand its tailor shop and print bar that will allow customers customise and put their own designs on the company’s branded jeans and T-shirts.
