With an expected Levi Strauss & Co. New York Stock Exchange (NYSE) listing on the horizon, the denim company’s initial public offering (IPO) is said to be oversubscribed by greater than 10 times, per unnamed sources. The company is expected to offer 37 million shares with the symbol of LEVI, according to a CNBC report.
As it stands, the company is forecast to list its stock in the range to $14 to $16. While the situation is not set in stone and influenced by the conditions in the market, sources in the report said it was probable the stock would be priced higher. The company first went public in 1971, but it has been private for more than three decades.
In the IPO, Haas family members are said to sell over 21 million shares. With the midpoint of the forecast range at $15 per share, proceeds for the family would clock in at almost $317 million. In addition, the new company reportedly is seeking to grow its market share in China, online and with women.
The news comes as it was reported that Levi Strauss & Co. has said it seeks to raise roughly $587 million via an upcoming IPO, whose tally would value the company at up to $6.2 billion. JPMorgan, Morgan Stanley, Bank of America Merrill Lynch and Goldman Sachs are among the underwriters. And, while the company said in a filing with the Securities and Exchange Commission (SEC) that the funds raised would be used for future acquisitions, it added that no deals are immediately planned.
Other uses of the funding are said to include working capital, capital expenditures and operating expenses. As it stands, firms that have denim in their portfolios are seeing high demand, with styles like pinstriped jeans. When it comes to the company’s broader strategy, it seeks to be a “global lifestyle” brand beyond current products that range from denim to footwear. Levi’s own total net top line came in at $5.6 billion last year.