Investors may be feeling a bit crafty today as retail chain Joann (NASDAQ:JOAN) makes its Wall Street debut. JOAN stock starts trading today on the Nasdaq, bringing the world of fabric and crafts to the public markets. So what do you need to know about the Joann IPO?
As a quick refresher, Joann is a retailer all about sewing. The company has its Jo-Ann Fabric and Crafts outlets, as well as a digital sales model, that helps it bring the world of crafting and other hobbies to consumers around the country.
With that in mind, here is what you need to know about JOAN stock and the Joann IPO:
- Investors should know that Joann has been leading in the sewing space for quite some time.
- That is because the company has been around since 1943.
- It calls Hudson, Ohio its home, but it has almost 860 stores across 49 states.
- According to the company, it also has an industry-leading e-commerce business.
- On its website, customers can purchase supplies for sewing, jewelry making, paper crafting, knitting and more.
- JOAN stock is coming back to the public markets today in a $12-per-share IPO.
- Investors should note that this is lower than the initial IPO price range of $15-$17.
- The Joann IPO comes as the company offers roughly 10.9 million shares.
- Of these shares, half come from Joann and half come from selling stockholders.
- This JOAN stock IPO price will bring in proceeds of $130.8 million.
- According to the company, these proceeds will help it pay off debt.
- Joann wants investors to know that there is a real market opportunity in sewing and crafts.
- One estimate puts the value of the market above $40 billion.
- This comes as the company brought in $2.6 billion in revenue for 2020.
JOAN Stock and the Joann IPO
So what else should you know about JOAN stock and the Joann IPO?
Perhaps one of the most interesting narratives for investors to consider is that Covid-19 has helped the company. This is because many consumers have turned to DIY projects to pass time at home. Specifically, we also saw many consumers start making face masks and other homemade personal protective equipment. According to Joann, these pandemic trends brought it greater digital engagement, more customers and greater interest from its existing clientele.
Investors should also note that this will not be its first time in the public markets. Joann previously traded as Fabri-Centers on the American Stock Exchange. The company struck a private equity deal and left Wall Street in 2011. However, the Joann IPO is a do-over, giving investors another opportunity with the sewing play.
Keep an eye on this IPO. Although it might not generate as much buzz as Roblox (NYSE:RBLX) and Coupang (NYSE:CPNG), JOAN stock is worth watching. This is because other DIY plays like Home Depot (NYSE:HD) and Etsy (NASDAQ:ETSY) have seen powerful Covid-19 success in the stock market.
On the date of publication, Sarah Smith did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Sarah Smith is a Web Content Producer with InvestorPlace.com.