* Plans to offer 41.7 mln shares at $17-$19/shr
* Intends to list on NYSE under symbol "KORS"
* IPO expected to price on Dec. 14
(Adds valuation, analyst comments, details)
By Brenton Cordeiro and Tanya Agrawal
Dec 2 Michael Kors Holdings Ltd, known for
its eponymous luxury lifestyle brand, filed with U.S. regulators
on Friday for an initial public offering of common stock that
values the company at as much as $3.63 billion.
The offering comes at a time when many companies are trying
to squeeze in their IPOs as the window of opportunity prised
open by Groupon's listing last month closes with the
holiday season kicking off later this month.
Earlier on Friday, Zynga Inc, the maker of Facebook games,
set the terms for its offering -- one of the most highly
anticipated deals of the year -- and is expected to start
trading in mid-December.
Michael Kors Holdings, with 169 stores in North America and
34 in Europe and Japan, is named after Chief Creative officer
and director Michael Kors, a well-known fashion designer and one
of the judges on the long-running TV fashion show "Project
The company, which intends to issue 41.7 million shares in
the price range of $17-$19 apiece, is expected to price its IPO
on Dec. 14.
"There's definitely a lot of support for this offering.
High-end luxury brands in terms of IPO performance have done
okay and Michael Kors will benefit from that," said Josef
Schuster, founder of IPOX Schuster, a fund that specializes in
investing in newly public companies.
"They are taking advantage of the window of
opportunity in the speciality consumer sector."
Michael Kors Holdings' filing follows that of Italian
fashion house Prada SpA, which listed earlier this
year in Hong Kong, after raising $2.1 billion in an IPO.
Italian luxury shoemaker Salvatore Ferragamo
also listed earlier this year.
Michael Kors himself is selling 5.8 million shares in the
IPO. Others offering shares include the company's chief
executive John Idol and its largest shareholder, Sportswear
The company, present in 74 countries, competes with luxury
like retailers such as Coach, Burberry, Ralph
Lauren and Hermes International.
Hong Kong-based Michael Kors Holdings, which sells fashion
accessories, footwear and apparel, reported net income of $72.5
million on revenue of $803.3 million in its fiscal 2011.
In the preliminary filing, it said that Morgan Stanley, JP
Morgan and Goldman Sachs & Co were the lead underwriters for the
Michael Kors Holdings also said it had granted
underwriters the right to purchase an additional 6.25 million
shares to cover over-allotment.
The company said it currently expects to retain
all its future earnings for use in the operation and expansion
of the business.
It plans to list its common stock on the New York Stock
Exchange under the symbol "KORS."
The amount of money a company says it plans to raise in its
first IPO filings is used to calculate registration fees. The
final size of the IPO could be different.
(Reporting by Brenton Cordeiro, Tanya Agrawal and Satyanarayan
Iyer in Bangalore; Editing by Maju Samuel, Saumyadeb