Joann is leveraging the surge in arts-and-crafts amid the pandemic to go public.
The fabrics and crafts retailer set the terms for its initial public offering with plans to raise $175 million by offering 10.9 million shares at a price range of $15 to $17.
At the midpoint of the proposed range, Joann would command a fully diluted market value of $679 million. The company, which intends to list its shares on Nasdaq under the symbol “JOAN,” released the terms the day after rival The Michaels Cos. entered into a deal to be acquired by private equity firm Apollo Global Management Inc. for $3.3 billion.
Joann operates 855 stores nationwide. It was taken private in 2011 by private-equity firm Leonard Green & Partners LP in a $1.6 billion deal, reported $2.6 billion in sales for the 12 months ended October 31, 2020.
“Joann is the nation's category leader in sewing and one of the fastest-growing players in the arts and crafts category," the company said in its filing documents.
Proceeds of the IPO will be used to pay down borrowings under a second lien facility and if possible, to pay down borrowing on an ABL facility.