(Updates with founder Kors’s stake in third paragraph.)
Dec. 13 (Bloomberg) -- 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. 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, 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.
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