Levi Strauss's shares open at $ 22.22 in stock exchange listing
Stocks of blue jeans giant Levi Strauss & Co. Increased 32 percent on the New York Stock Exchange, giving the company a market capitalization of $ 8.7 billion and demonstrating strong demand for owning a portion of the jean giant. [19659002] div> div.group> p: first-child "/>
Levi Strauss on Wednesday night priced his original $ 17 public offer, peaking original expectations of between $ 14 and $ 16 per share.
That The recent public company, under the symbol "LEVI" has an opportunity to improve the market share with women outside the core of men's jeans. Its men's business accounted for $ 4 billion of Levi's revenues of $ 5.6 billion, and was one " important driver for profit ", the company has said.
Levi Strauss also sees further expansion through new stores, additional wholesale connections and the development of online sales. Geographically, it expects continued growth in China, where only 3 per cent of revenue came from 201[ads1]8. [19659003] These plans even come as the global jeans industry has faced pressure from new competitors and alternatives such as Lululemon Athletica leggings. sales of jeans climbed on a 3.5 percent compound annual growth rate, slower than the entire clothing category, according to Bernstein analyst Jamie Merriman.
Nevertheless, Levi Strauss has carved out a unique place for himself, with its iconic brand and "exceptional quality at available prices," the company said. For the year ending November 2018, Levi Strauss reported revenue of $ 5.58 billion, a 13.7 percent jump over the previous year. This increase has come as the company also added to its marketing, which jumped by almost 24 percent over the same year.
Some of the jean company's efforts over recent years to strengthen their affiliation with customers include a presence at US festivals and and sporting events. In 2017, the singer Beyonce had the brand's cutoff shorts for her performance at the Coachella Music Festival
. The 166-year-old company was first published in 1971, but has been private for the past 34 years. The offer will give the descendants of the founders a chance to pay some of their holdings. According to the prospectus, members of the Haas family will sell more than 21 million shares in the listing.
However, the family will continue to hold nearly 81 percent of the voting value through the company's two-tier share structure. The family, through the class B shares, will have 10 votes for each 1 vote of regular "A shares".
In his IPO documents, Levi Strauss has filed with regulators that it plans to use proceeds from the offer to further invest in its business, including potential acquisitions or strategic investments.
CNBCs
Courtney Reagan
contributed to this report
