April 20, 2021

Levi Strauss prepares to return to the stock market after its exclusion in 1985

Levi Strauss prepares to return to the stock market after its exclusion in 1985


MadridUpdated:

Levi Strauss, the popular American jeans firm, has registered with the US Securities and Exchange Commission (SEC) the prospectus to carry out an initial public offering of shares, which would represent the return to the parquet of the company after its exclusion from the stock market in 1985, as reflected in the documentation submitted by the company, which is intended to be listed under the 'LEVI' symbol on the New York Stock Exchange.

In the application filed with the US CNMV, Levi Strauss has indicated its intention to raise 100 million dollars (88.5 million euros) by placing their shares, although this figure is merely indicative for the calculation of commissions, and probably the amount raised is substantially higher. In this sense, sources consulted by CNBC have pointed out that the company aims to raise between 600 and 800 million dollars (532 and 709 million euros).

"We intend to use the net resources received through this offer for general corporate purposes of the company, including working capital, operating expenses and capital expenditures," the company reports, leaving open the door to the possibility of allocating part of the the funds raised to «Acquisitions or other strategic investments».

Once the return to the parquet of Levi Strauss is completed, the firm will have two types of actions, class A and class B, whose holders will have identical rights, except in what refers to the vote, as well as to the conversion and transfer. Goldman Sachs, JP Morgan Securities and Merrill Lynch are among the dozen entities that subscribe to the operation. Founded in 1853, the company debuted on the Stock Exchange in 1971, but returned to private hands in 1985.

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