The two founders of Manchester-based online fashion giant Boohoo Group plc, Mahmud Kamani and Carol Kane, intend to sell up to 50 million shares in the company — about 4.3% of the firm’s issued share capital.

Shares of Boohoo were trading down 3% on Wednesday at around 297p, give the company a current stock market value of around £3.5 billion.

In a stock exchange statement, Boohoo said: “Zeus Capital Limited and Jefferies International Limited announce that they have been advised by Mahmud Kamani and Carol Kane that they intend to sell up to 35,000,000 and 15,000,000 ordinary shares respectively in boohoo group plc.

“Mahmud Kamani is the group co-founder and group executive chairman of boohoo, and Carol Kane is the group co-founder and executive director of boohoo.

“The placing shares will be sold via an accelerated bookbuild placing to institutional investors …

“Zeus Capital and Jefferies, each acting as joint global co-ordinator and bookrunner, have entered into a block trade agreement with the selling shareholders.

“Boohoo is not a party to the block trade agreement and will not receive any proceeds from the placing.

“The placing shares represent up to c. 4.3 per cent. of the issued share capital of boohoo. 

“Assuming that all of the placing shares are sold, the selling shareholders would continue to have an interest (in aggregate) in 184,010,301 ordinary shares in the company, representing approximately 15.8 per cent. of the company’s issued share capital …

“Assuming the placing shares are in aggregate 50 million ordinary shares,  the selling shareholders have agreed that, following completion of the placing, they will not, without the company’s and joint global co-ordinators’ prior written consent, dispose of further ordinary shares in the company for a period of 18 months (subject to certain customary exceptions) …”