Finance-minded crafters, take note: Michaels has gone public. The Irving-based retailer began selling shares on Nasdaq today following a $472 million IPO on Thursday with 27.8 million shares priced at $17 apiece, Businessweek reports. That’s the bottom of the company’s initial range of $17 to $19, an outcome that could indicate “tepid demand for its stock,” according to the Associated Press.
Bain Capital Partners LLC and Blackstone Group LP, Michaels’ owners since 2006, continue to own a combined 86 percent of the company, but they have both expressed interest in making an exit in the near future, per the Dallas Morning News.
The Bottom Line: For now, Michaels is seemingly avoiding the struggles plaguing many other brick-and-mortar retailers. Its net income grew by 22 percent over the last year to $243 million, and the chain is gradually expanding toward a goal of operating 1,500 stores — according to the AP, the company plans to reach the 1,300 mark by the end of this fiscal year. However, the wire service notes, “Michaels has been late to the online party, launching its e-commerce business only earlier this year.”