New York—Like his colleague on “Project Runway” Heidi Klum points out: “In fashion, one day you’re in. The next day you’re out.” Well Michael Kors is definitely in–worth some analysts say, some $3.62 billion.
On Friday, his company, Michael Kors Holding Ltd., made a regulatory filing to float a public offering that could raise as much as $900 million.
Under the terms of the offer, 41.7 million shares (about 22% of the company’s outstanding stock) at $17 to $19 a share plus overallotments will be up for sales, probably on Dec. 14, according to Bloomberg News. The company, which would have a valuation estimated at $3.62 billion, won’t receive any proceeds from the offering.
While the Hong Kong-based Michael Kors Holdings won’t be selling any shares, investors offering shares include Sportswear Holdings which plans to sell 25.9 million shares thus reducing its stake to 38% from 52%. John Idol, Kors’ ceo, plas to reduce his stake to 5.1%. Kors himself is selling 5.8 million shares reducing his stake from 12% to 8.6%.
Report: Kors to Retain Creative Control
The designer, who serves as chief creative officer, reportedly has a contract ensuring a position with the company until his death, disabled or dismissed “for cause” and he has “creative and aesthetic control” of all products bearing his name and other related trademarks.
Celebrating its 30th anniversary this year, Michael Kors recorded record sales of $520.2 million and a profit of $64.7 million for the six-month period ending Oct. 1. That’s more than double the profit from a year ago. The company has 169 stores in North America, 34 in Europe and Japan, and sells in more than 74 counties.
Besides his women’s apparel lines, Kors launched handbags, footwear, belts and eyes under his Collection label in 2001. Later adding handbags, small leathergoods, belts, footwear, eyewear in watches under his Michael Michael Kors brand. And this fall he added his first fashion jewelry collection, a license with Fossil.
Kors won the CFDA Award for Women’s Wear in 1999 and numerous nominations for the CFDA’s Accessories Designer of the Year. In 2010, he was the youngest recipient ever of the Geoffrey Beene Lifetime Achievement Award from the CFDA.
Morgan Stanley, JP Morgan Chase & Co. and Goldman Sachs Group Inc. are managing the IPO, according to the filing. The stock will trade on the New York Stock Exchange under the ticker KORS.
The underwriters will also have a 30-day option to purchase up to an additional 6,255,000 common shares from the selling shareholders, according to the prospectus.