Following the pattern of past, Levi Strauss on Wednesday has filed the paperwork for an initial public offering.
The iconic denim company aims to play in the New York Stock Exchange with a ticker “LEVI.”
As per the SEC filings, the San Francisco-based company plans to raise $100 million through the IPO, which is a placeholder amount used to calculate fees. But as per some reports, the company has a target of raising between $600 million to $800 million.
Levi’s said that it aims to use the proceeds from going public for “general corporate purposes,” that includes working capital, operating expenses and capital expenditures. As per the filing, the company sees the opportunity to expand its presence in emerging markets such as China, India, and Brazil.
A part of the proceeds could go to acquisitions or other strategic opportunities, but the company said that it has no current plans to do so.
During 2018, Levi’s reported revenue of $5.58 billion and net income of $283 million.
The partners underwriting the IPO include Goldman Sachs, J.P. Morgan, Bank of America Merrill Lynch, Morgan Stanley, Evercore ISI, BNP Paribas, Citigroup, Guggenheim Securities, HSBC, Drexel Hamilton, Telsey Advisory Group and the Williams Capital Group.
Once the IPO is done, Levi’s will be having both Class A and Class B common stock. Class B shareholders will get ten votes for every Class A vote.
It should be reported here that Levi’s went public in 1971 for the first time, but descendants of the founder retook the company private in 1985. Since then, the company has struggled due to changing fashion trends and a highly competitive market but has shown a comeback since Chief Executive Officer Chip Bergh took charge in 2011.
Levi’s spokeswoman Amber McCasland denied making any comments, citing SEC rules that bar formal discussions ahead of the filing.
