Levi's IPO returns to Wall Street with a $6.6 billion valuation
The iconic jeans brand launches an IPO after a 34-year hiatus.
Levi’s initial public offering (IPO) comes back to Wall Street for the first time since 1985. The denim clothing company hopes that its strong sales will translate to a successful stock.
Details of Levi’s IPO
Levi’s will trade under the symbol ‘LEVI’. The clothing company’s shares will sell for $22 a share and is valued at $6.6 billion. Levi’s offered 37 million shares to investors and raised $620 million. The corporation’s chief executive officer (CEO), Chip Bergh, also noted the success of Levi’s online sales before the IPO launch.
‘It’s clear our strategies to diversify our product portfolio, expand our direct-to-consumer business, and deepen our connection with consumers worldwide have worked, resulting in both higher annual revenues and gross margins,’ said Bergh.
The valuation is high likely because Levi’s sales in 2018 topped $5.6 billion. Levi’s profits also increased with Millennial female customers, a coveted retail customer base. The surge in sales is in part because of the resurgence of high-waisted, acid-washed jeans that the corporation made in the 1980s.
Levi’s expansion plans
Though men’s jeans also drive Levi’s profits, the company wants to expand to cater to customers of all genders and sell other items, like T-shirts and hats.
‘We are focusing our product design and marketing efforts to reshape our global consumer perceptions from a US men's bottoms-oriented company to a global lifestyle leader for both men and women,’ said Levi’s in its IPO filing.
The corporation also wants to expand to sales internationally as well. Profits in Asia have grown by 18% and in Europe by 25%.
‘We believe we have a significant opportunity to deepen our presence in key emerging markets, such as China, India and Brazil, to drive long-term growth,’ said Levi’s.
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