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2011 December 2

Michael Kors Makes IPO Moves

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(NEW YORK) Michael Kors is the latest designer headed towards an initial public offering with the New York Stock Exchange, and the payoff could be enormous. The offering, which will likely be priced on December 14, could ratchet up the company's value to $3.63 billion, reports NYT's DealBook, comprised of 41.7 million shares set to fetch $17 to $19 apiece. The company won't be selling any shares, but the designer himself will be whittling his stake in his eponymous company from its current 12 percent to 8.6 percent, through the intended sale of 5.8 million shares. Another 25.9 million shares will be up for grabs courtesy of company investor Sportswear Holdings Ltd., which plans to sell off 14 percent of the 52 percent majority stake it owns at present. Signifying the brand's IPO-bound intentions, Michael Kors Holdings filed a registration statement in reference to an initial public offering with the Securities and Exchange Commission today. The IPO is being managed by Morgan Stanley, JPMorgan Chase, and Goldman Sachs.

Recent profits, for the six-month period ending October 1, of Kors' earnings more than doubled, raking in net sales of $520.2 million and a profit of $64.7 million. Over the summer, the company raised funds from private investors, and aims to raise $792.3 million by going public. Should the IPO go through, it will certainly be easy to spot the designer's stocks on the NYSE ticker: The company will trade under the symbol "KORS." 
ALEXANDRA ILYASHOV  




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