Levi Strauss has kicked off the comeback of the US stock exchange and hopes that investors will impose a price of around $ 5 billion on the inventor of blue jeans despite a competitive clothing market.
The San Francisco based company had plans to record on the New York Stock Exchange on the ticker LEVI on Wednesday, returning to the public market 34 years after its privatization.
The group, which participated in an IPO this year with other companies such as Uber, Lyft and Airbnb, did not confirm how much they would raise. Individuals who knew about the IPO said that they plan to attract $ 600 million to $ 800 million and value more than $ 5 billion.
The revenue would be used to "increase financial flexibility for general corporate purposes, including working capital, operating costs and capital expenditure," the company said.
Levi plans to go public at a time when the rise of online shopping and changing consumer tastes are driving trade. Consumers are buying more athletic clothing, a trend known as "sport."
In a filing with the Securities and Exchange Commission, Levi sought to convince Wall Street that it could succeed in the changing landscape. She emphasized her move into omni-channel retailing and combined physical and online presence.
"While e-commerce is still a small part of our net sales, it has been our fastest growing business in recent years," the company said in its application. The distribution channels generated almost two-thirds of net sales last year.
In stores, Levi has given customers the opportunity to tailor their own jeans. Other initiatives include new styles such as conical suits in men's jeans, celebrity ties such as singer Justin Timberlake and a boost in categories such as tops and women's clothing.
The company, whose products are sold in more than 50,000 outlets, recently opened a 17,000-square-foot store in Times Square, New York.
Descendants of Levi Strauss, the German immigrant who founded the company, retain control of class B stock. In 1985, they became private after a previous entry in 1971.
The group expanded outside the US. Europe and Asia now account for 29 and 16 percent of sales, respectively. The goal is to expand in China, India and Brazil, as well as in other emerging markets. Given the burden of global supply chains, the group claimed that no country accounted for more than a fifth of its procurement.
Total debt at the end of November was $ 1.05 billion, although the company said it had nearly halved the burden since 2011.
The company reported sales of $ 5.6 billion in November, an increase of 14 percent over the previous year. Net income increased to $ 283.1 million from $ 281.4 million a year earlier.
Bankers of JPMorgan Chase Goldman Sachs lead the IPO.
The plans put pressure on shares in other apparel companies. Holdings in Gap, American Eagle Outfitters and Urban Outfitters had dropped at least 2 percent in the early afternoon in New York.