MOVADO RAISES $32.2M
NEW YORK — Movado Group Inc. raised $32.2 million before underwriting costs from the sale of 1.5 million shares in a secondary offering priced at $21.50 a share.
Proceeds to the luxury watch maker will be used for working capital and general corporate purposes, including the expansion of existing brands, introduction of new brands, establishment of retail boutiques and other marketing and distribution efforts.
Shareholders, primarily chairman Gedalio Grinberg, also sold another 900,000 shares in the offering. Grinberg collected $19.4 million before underwriting costs from the sale of 634,500 shares. Grinberg and his son, president Efraim Grinberg, now beneficially own 3.2 million shares of stock, or 24.8 percent of outstanding stock, but 66.4 percent of the voting power.
In the six months ended July 31, Movado’s earnings rose 73.1 percent to $2.1 million, or 18 cents a share, as sales gained 12.4 percent to $91.9 million.
The company designs, manufactures and distributes watches under the Movado, Concord and ESQ labels and is the exclusive distributor of Swiss-manufactured Piaget and Corum watches in the U.S., Canada, Central America and the Caribbean. It plans to introduce a Coach line in spring 1998.