Strong IPO Boosts Levi Strauss Market Cap To $8.7 Billion

Levi's jeans

Levi's jeans

But jeans are still the company's mainstay and that was apparent on Thursday at the New York Stock Exchange, when in a rare move its "no jeans" policy was suspended to commemorate Levi's re-entry, transforming the floor from suits and ties into a sea of blue denim, with its traders sporting jeans and denim jackets.

Levi first went public in 1971.

They said Levi's now has the chance to improve market share with women beyond its core business of men's jeans. The company originally expected to price its 36.67 million shares in the range of $14 to $16.

Levi's will raise $623 million in the offering. But after 14 years, it was taken private by the Haas family, the descendants of founder Levi Strauss, in a $1.6bn buyout. The company is not only the global market leader in denim, but has successfully expanded to new categories, he said.

The line-up also includes photo-posting app Pinterest and business messaging app Slack. The Haas family will retain 80 percent voting control of the public company.

Bergh said a desire among existing shareholders to diversify, coupled with strong corporate performance and supportive market conditions, led to the decision to go public in 2019. "There was a lot of pent-up demand because it's been pretty slow the last couple of months and that was also probably a tail-wind for us". Levi's priced its shares at $17, which could give the company a $6.6 billion valuation.

For the year ended November 2018, Levi's reported sales of $5.58 billion, a 13.7 percent jump year-on-year.

The company said it wants to shift away from being only a jeans company and is planning to grow its tailor shop and print bar, which allows consumers to customize Levi's jeans and t-shirts. The Americas, Europe and Asia segments contributed 55%, 29% and 16%, respectively, of net revenues in fiscal year 2018.

Levi's is also defying a trend among rival fashion retailers and brands like Gap Inc. and Wrangler parent VF Corp. that are splitting up to stay viable.