Market Overview

Levi Strauss S-1 Shows Registration For $100M IPO

Levi Strauss S-1 Shows Registration For $100M IPO

Levi Strauss is once again planning to go public, according to a filing on Wednesday.

What Happened

Levi Strauss filed a new S-1 filing with the SEC indicating it plans to conduct an initial public offering and trade on the NYSE under the stock ticker LEVI. The filing indicated the company is seeking to raise $100 million. LEVI stock will have two share classes, with Class B shareholders getting 10 times the votes of Class A shareholders.

JPMorgan and Goldman Sachs will be leading the underwriting process for the IPO. The prospectus indicates Levi Strauss had $285 million in net income in the year ending Nov. 25, up 1.4 percent from the previous year. Revenue for the same period was $5.6 billion, up 14.2 percent year-over-year.

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The prospectus said proceeds from the IPO will be used for “general corporate purposes, including working capital, operating expenses and capital expenditures.” The company said it may also use proceeds to finance acquisitions or other strategic investments, but it currently has no such deals in the works.

Why It’s Important

Levi Strauss has been an iconic American clothing company known for its Levis’ brand denim jeans since 1853. Levi Strauss Signature jeans are now sold in more than 110 countries. The company first went public back in 1971, but the founder’s family took the company private again in 1985.

For more than three decades, public investors have not had access to Levi’s stock, but the new filing suggests they could have their chance soon.

Levi has reportedly struggled to adapt to a changing fashion landscape, but CEO Chip Bergh has brought the company back on track since taking over in 2011.

Investors will be watching to see how the IPO process unfolds, including whether or not the underwriters are able to drum up demand for shares near approaching the $100 million target. Investors will then be on the lookout for an IPO price and date to be announced sometime in the near future.

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Posted-In: Chip Bergh Goldman Sachs JPMorgan Levi Strauss Levi'sNews IPOs Top Stories Best of Benzinga


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