FINANCE
Levi Strauss & Co. Closes Above IPO Pricing With Unexpected Investors
Following the initial public offering price of $17 per share, San Francisco’s Levi Strauss & Co. closed at $22.41 per share on March 21, up $5.41, a 31.82 percent increase.
The company started trading on the New York Stock Exchange on March 21 under the symbol “LEVI.” It offered 9,460,557 shares of Class A common stock, while selling stockholders were offering 27,206,110 of Class A common stock.
According to media outlets, Levi Strauss & Co. raised more than $623 million during its IPO, with the $17-per-share asking price well above the expected $14-to-$16 range.
Underwriters have a 30-day option to purchase up to an additional 5.5 million shares of Class A common stock from Levi Strauss & Co. at the IPO price, less underwriting discounts and commissions. Subject to the satisfaction of customary closing conditions, the closing of the offering is expected to take place on March 25.
As part of its initiative to persuade Levi Strauss & Co. to move away from using the traditional leather back patch on its jeans in favor of a vegan option, the animal-rights group People for the Ethical Treatment of Animals bought the minimum number of 175 shares, which would allow the organization to submit shareholder resolutions and to attend and speak at Levi’s annual meetings.
The parent company of Levi’s, Dockers, Signature by Levi Strauss & Co. and Denizen, Levi Strauss & Co. reported net revenues for fiscal 2018 were $5.6 billion, a 14 percent increase over the previous year, while net income was $285 million.
