initial public offerings (IPOs) trading on American exchanges

Sunday, February 17, 2019

Levi Strauss IPO

Levi Strauss filed plans for an IPO on Wednesday, 35 years after a leveraged buyout took the jeans maker private. The Levi Strauss IPO aims to raise $100 million, though that is believed to be a placeholder. Renaissance Capital estimates the initial public offering could raise up to $750 million.

"We are an iconic American company with a rich history of profitable growth, quality, innovation and corporate citizenship," Levi Strauss said in its IPO prospectus.

The San Francisco-based company was founded in 1853 as a wholesale dry goods business and introduced its denim blue jeans 20 years later. In addition to jeans, the company makes casual and dress pants, tops, shorts, skirts, jackets, footwear and related accessories. Its brands include Dockers, Denizen and Signature.

Levi Strauss products are sold in more than 50,000 retail shops in 110 countries. It also has company-operated e-commerce sites.

Levi Strauss Revenue
For the 12-month period ended Nov. 25, Levi Strauss reported revenue of $5.57 billion, up 14% from the year-ago period, with net income of $285.2 million.

The lead underwriters for the Levi Strauss IPO are Goldman Sachs, JPMorgan and BofA Merrill Lynch. It plans to list on the NYSE under the ticker LEVI. No pricing terms were disclosed. Levi Strauss said it'll use IPO proceeds for general corporate purposes, including working capital and capital expenditures.

CEO Charles Bergh joined Levi Strauss in 2011. He previously spent 28 years in leadership roles at Procter & Gamble (PG).

Denim Stock Blues
Among apparel retail stocks with denim exposure, Gap (GPS) fell 0.1% on the stock market today, well off session lows. American Eagle Outfitters (AEO) slid 1.5%, Abercrombie & Fitch (ANF) retreated 2.3% and Urban Outfitters (URBN) 1.8%. Guess (GES) reversed higher to close up 0.5%.

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