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.
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.
This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
Seize a share opportunity today
Go long or short on thousands of international stocks.
- Increase your market exposure with leverage
- Get spreads from just 0.1% on major global shares
- Trade CFDs straight into order books with direct market access
Live prices on most popular markets