Michael's Shares Ends Flat in Trading Debut
This story has been updated from 12:33 pm ET with CEO comments, stock price update.
NEW YORK ( TheStreet) -- Shares of Michaels
Late Thursday, Michaels raised $472 million after pricing 27.8 million shares at $17 a share, according to a press release . The price, which was at the low-end of the range given in the company's regulatory filing, had valued the company at roughly $3.45 billion. In 2006, the company was taken private by Bain Capital and Blackstone Group in a transaction valued at about $6 billion. Michaels does not plan on paying any cash dividends in the near future and will instead use earnings to repay part of its $3.7 billion in debt and reinvest in the company.
In a video interview on Friday, CEO Carl "Chuck" Rubin said that the company is not focused on short-term stock moves but longer-term results. "We know over time that we've got a terrific foundation, a more exciting strategy that's going to lead us forward," Rubin said. "We're much more focused on the long term and doing what's right for our customers, which will then translate into something that's great for investors and less focused on what happened in the first day of trading."
With more than 1,200 stores, Michael's is facing intense competition from mass-market retailers such as Walmart
"Social media is one of the greatest things for our business because people are seeing things that other people make with their own hands, their own creativity, they see these things posted on Pinterest, Facebook, you see it even in mainstream media like HGTV. We think that's inspiring people to go out and try to make things on their own," Rubin noted. "That will translate into customers, which will translate into sales."