The jeans manufacturer Levi Strauss returned to the stock market on Thursday with flickering. Stocks rose more than 30 percent in the first trading session, and the New York Stock Exchange shifted its usual strict dress code to garnish denim shoppers.
During the IPO, the sale of $ 36.7 million, $ 173 each, generated $ 623 million. The price range rose from $ 14 to $ 16 per share after strong demand for the well-known apparel company.
Levi's shares were opened at $ 22.20 as orders for denim-clad floorboard retailers increased. By midday in New York, they were listed at $ 22.67. That gave the company a market value of $ 8.6 billion.
It is Levi's return to the public market after the Haas family, descendant of the founder Levi Strauss, took the blue jeans maker privately in 1985. The success of the IPO is a good sign for a long line of other companies looking to go public in the coming months. After the turbulence on the stock markets last year and the stagnation of the US government, many other fluctuations were delayed.
There are currently more than 300 companies that, according to Bloomberg data in the US, want to raise nearly $ 49 billion. Goldman Sachs predicted at the end of last year that 2019 will be a record year for IPOs and predicts that as much as $ 80 billion could be raised.
Carolyn Saacke, NYSE's Chief Operating Officer for Capital Markets, said these levels were somewhat aggressive, but they hoped Levi's initial public offering would trigger a strong series of IPOs.
"We are also very optimistic," she said. "We obviously had a slow start due to the shutdown of the government, so this is really the beginning of what we call the start of the new IPO season of 2019. We'll see a lot, especially in technology."
The recent recovery of the stock market has strengthened the expectation that IPOs will recover. The S & P 500 actually fell 20 percent from its peak last year, and the closure of the government prevented many companies from filing the necessary regulatory documentation they need for the IPO. However, the government was reopened at the end of January. This year, US equities rose 13 percent, making the IPO environment more favorable.
Lyft, the driving company, launched its investor roadshow on Monday and has already created an overflowing order book that could raise its stock price above the original $ 62 to $ 68 mark. Lyft's IPO is expected to be announced on March 28 and traded to Nasdaq the following day.
However, most of the attention is likely to be the largest listing for a US tech company in a few years, but more well-known names from Silicon Valley are expected to follow, including Pinterest, Uber, Airbnb, Palantir, and messaging Company Slack.
"We've all heard of these 'decacorns' going public," said Ms. Saacke. "Some like and others do not, but we are really optimistic for many industries in 2019."