Early investors in Michael Kors Holdings Ltd. stand to raise as much as $1.21 billion in a secondary offering that could put another 23 million of the firm’s shares on the open market.
The offering was priced at $53 a share Tuesday and is expected to close Friday.
Kors, which raised it second-quarter earnings and full-year guidance last week, said in a regulatory filing that Michael Kors the designer would sell 4 million shares, which, at $53 a share, would net him $211.2 million. Kors would still hold 8.4 million shares of the company, or 3.9 percent of those outstanding, after the offering.
Kors chairman and chief executive officer John Idol is set to sell 2.9 million shares, amounting to $151.7 million. Idol would be left with 4.4 million shares.
Sportswear Holdings Ltd. is selling 14.4 million shares, which would total $764.8 million. That will leave Sportswear owning 33.8 million shares of Kors. Sportswear is the investment vehicle of Silas K.F. Chou and Lawrence S. Stroll, who each own a 50 percent interest in the entity.
The Hong Kong-based apparel firm’s stock fell 4 percent to $52.30 Tuesday.