Michaels Stores Hopes for $500m IPO

US retailer Michaels Stores has filed with regulators to raise up to $500 million in an IPO that could be one of the year’s largest IPOs in the retail sector, writes Reuters. The offering comes six years after private equity owners Blackstone and Bain purchased the Texas-based arts and crafts company for more than $6 billion.

Reuters – Michaels Stores Inc filed with U.S. regulators on Friday to raise up to $500 million in an initial public offering of common stock that could be one of the year’s largest IPOs in the retail sector.

The offering comes six years after private equity owners Blackstone and Bain purchased the Texas-based arts and crafts company for more than $6 billion.

The company told the U.S. Securities and Exchange Commission in a preliminary prospectus that J.P. Morgan, Goldman Sachs, Barclays and BofA Merrill Lynch, among others, are underwriting the IPO.

Michaels operates 1,066 retail stores in 49 U.S. states and in Canada. It posted earnings before interest, taxes, depreciation and amortization (EBITDA) of $661 million in 2011 and had total debt of $3.5 billion as of Jan. 28, 2012.

The IPO could prove a significant test for private equity firms looking to exit investments this year. Many firms are now looking to aggressively sell or IPO their portfolio companies after being unable to do so in late 2011 due to economic uncertainty.

If successful, Michaels could pave the way for other large private equity-backed companies to tap the public markets. Several of these companies, including Toys R Us, have filed registration documents for an IPO but have not yet stated when they will go public.

The Michaels filing did not reveal how many shares the company plans to sell or an expected price.

The company intends to list its common stock on the New York Stock Exchange under the symbol “MIK.”

The amount of money a company says it plans to raise in its first IPO filing is used to calculate registration fees; the final size of the IPO may differ.