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Posted at 5:36 pm ET on March 11, 2019
Yoga pants: The IPO program of Levi Strauss & Co. shows that the jeans are back in the game.
The famous American clothing company, which had patented the first pair of jeans in 1873, filed Monday an IPO plan that should bring in $ 587.2 million. According to the regulatory document, the company would sell 36.7 million shares at a price of 14 to 16 dollars each.
Denim fights with leggings and "athleisure" for its share of the casual wear market. Imports of elastic knit pants surpassed denim for the first time in 2017. However, the only staple food in American closets recently marked the beginning of a strong comeback: the jeans category in the United States United has grown 2.2% to $ 16.7 billion in 2018 after four consecutive years of decline, according to data from Euromonitor.
The company had been slow to incorporate the comfort of yoga into its styles by adding stretches, but these efforts ultimately paid off, especially in women's clothing, which has experienced double-digit growth for eight consecutive quarters and currently account for almost a third of the total. Sales. Global revenues increased 14% in fiscal year 2018 compared to the previous year.
Most of the shares will be sold by the current shareholders and Levi Strauss expects to collect about $ 106.6 million in the middle of the range for his own use. It plans to place the proceeds of the sale for the general purpose of the company, although some may be used for acquisitions or strategic investments, the company said in the document.
Current holders plan to offer 27.2 million shares, of which the company will not receive any proceeds. The company sells approximately 9.5 million shares. He plans to enter the New York Stock Exchange under the symbol LEVI.
The company, which is controlled by the founding Haas family, has announced its intention to be listed in February. According to CNBC, the company would be valued at $ 5 billion, which would give the family a combined net worth of at least $ 2.5 billion.
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