Michael Kors IPO Said to Be Oversubscribed
Michael Kors Holdings Ltd., the clothing company founded by the designer of the same name, has gotten orders for more stock than is being sold in its initial public offering, said two people with knowledge of the matter.
The banks managing the Kors Holdings sale will stop taking orders for the shares today, said the people, who declined to be identified because the process is private. The IPO is scheduled to price tomorrow, Bloomberg data show.
Kors Holdings is seeking as much as $792 million on behalf of existing stockholders, a regulatory filing shows. Kors himself, the chief creative officer and largest individual investor, plans to trim his stake to 8.6 percent from 12 percent in the sale.
Kors Holdings is selling 41.7 million shares for $17 to $19 apiece, according to the filing. The clothing maker is among 11 companies, including online game maker Zynga Inc., aiming to generate as much as $3.8 billion in U.S. IPOs this week, the most since March.
Lisa Pomerantz, a spokeswoman for the company, declined to comment. Pen Pendleton, a spokesman for Morgan Stanley, the bank leading the IPO, declined to comment.
The midpoint of the offering range would value Kors Holdings at $3.4 billion, or 3.4 times sales of $1 billion in the 12 months through Oct. 1, its filing shows. Coach Inc. (COH) trades at about 4 times sales over the same period, and Ralph Lauren Corp. is at about 2 times sales.
Kors Holdings plans to more than double stores over the “long term,” according to its regulatory filing. Sales surged more than 60 percent to $548.7 million in the six months through Oct. 1.
Morgan Stanley (MS), JPMorgan Chase & Co. and Goldman Sachs are leading the offering for the clothing maker, whose shares will trade on the New York Stock Exchange under the ticker KORS.
To contact the reporters on this story: Zijing Wu in London at zwu17@bloomberg.net; Lee Spears in New York at lspears3@bloomberg.net
To contact the editors responsible for this story: Jennifer Sondag at jsondag@bloomberg.net; Jacqueline Simmons at jackiem@bloomberg.net
Michael Kors Surges in Trading Debut
Peter Foley/Bloomberg
Signage is displayed outside a Michael Kors Holdings Ltd. store on Madison Avenue in New York.
Signage is displayed outside a Michael Kors Holdings Ltd. store on Madison Avenue in New York. Photographer: Peter Foley/Bloomberg
Dec. 12 (Bloomberg) -- Jay Ritter, a finance professor at the University of Florida, talks about the outlook for the initial public offering market. Zynga and Michael Kors Holdings Ltd. are leading the biggest week for U.S. IPO offerings in nine months, betting their surging sales will attract investors. Ritter speaks with Betty Liu and Dominic Chu on Bloomberg Television's "In the Loop." (Source: Bloomberg)
Michael Kors
Konrad Fiedler/Bloomberg
Accessories are displayed in the window of a Michael Kors Holdings Ltd. store at the Beverly Center mall in Los Angeles.
Accessories are displayed in the window of a Michael Kors Holdings Ltd. store at the Beverly Center mall in Los Angeles. Photographer: Konrad Fiedler/Bloomberg
Michael Kors Initial Public Offer Said to Be Oversubscribed
Michael Kors via Bloomberg
The Michael Kors boutique stands at Rockefeller Center in New York, U.S., in this undated handout photo.
The Michael Kors boutique stands at Rockefeller Center in New York, U.S., in this undated handout photo. Source: Michael Kors via Bloomberg
Rate this Page
Bloomberg moderates all comments. Comments that are abusive or off-topic will not be posted to the site. Excessively long comments may be moderated as well. Bloomberg cannot facilitate requests to remove comments or explain individual moderation decisions.