JOANN, a multi-channel fabric and crafts retailer with 855 stores, raised $131 million by offering 10.9 million shares (50% insider) at $12, far below the range of $15 to $17. At pricing, JOANN commands a fully diluted market value of $505 million.
JOANN operates a nationwide network of sewing, fabrics, and arts and crafts retail stores, leveraged by an online digital platform. Since 2016, the company has focused on pivoting from a traditional retail business model to becoming a multi-channel, digitally-connected provider of creative products. JOANN currently is the nation’s category leader in sewing (representing 49% of its 10/31/20 LTM Sales) controlling approximately one-third of the market share. The company also offers an extensive assortment of creative products, which at its peak, averages more than 95,000 SKUs in stores and over 245,000 SKUs online across various categories.
JOANN plans to list on the Nasdaq under the symbol JOAN. BofA Securities, Credit Suisse, Guggenheim Securities, Barclays, Wells Fargo Securities, Piper Sandler and William Blair acted as lead managers on the deal.
