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Levi Strauss Seek To Raise Up To $587 Mln In IPO

Iconic denim jeans company Levi Strauss & Co. said Monday that has commenced an initial public offering or IPO of 36.67 million shares of its Class A common stock.

Levi Strauss is offering 9.47 million shares in the offering, while selling stockholders are offering 27.20 million shares. The company has applied to list its common stock on the New York Stock Exchange under the ticker symbol "LEVI."

In a regulatory filing, Levi Strauss said it currently expects the IPO price to be between $14.00 and $16.00 per share. The company aims to raise as much as $587 million through the IPO.

The underwriters will have a 30-day option to buy an additional 5.50 million shares of Class A common stock from the company at the IPO price, less underwriting discounts and commissions.

Goldman Sachs & Co. LLC and J.P. Morgan Securities LLC will serve as joint lead book-running managers for the offering. BofA Merrill Lynch, Morgan Stanley & Co. LLC and Evercore Group L.L.C. will serve as book-running managers.

BNP Paribas Securities Corp., Citigroup, Guggenheim Securities, LLC, HSBC
Securities (USA) Inc., Drexel Hamilton, LLC, Telsey Advisory Group, and The Williams Capital Group, L.P. will serve as co-managers.

Levi Strauss said it currently intends to use the net proceeds it receives from the IPO for general corporate purposes, including working capital, operating expenses and capital expenditures. The company may also use a portion of the net proceeds for acquisitions or other strategic investments, although it does not currently have any plans to do so.

This is the second time that Levi Strauss is seeking to go public. The company earlier went public in 1971, but was again taken private in 1985 through a leveraged buyout and has been a privately-held company ever since.

Levi Strauss, which claims to have created the first pair of blue jeans in 1873, continues to wield its dominance in the denim retail industry even after more than 145 years. The company was founded in San Francisco, California in 1853 as a wholesale dry goods business.

As of January 30, 2019, Levi Strauss' products were sold in over 50,000 retail locations, including approximately 3,000 brand-dedicated stores and shop-in-shops. The company had 831 company-operated stores and approximately 500 company-operated shop-in-shops.

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