Michaels (MIK), the largest arts and crafts seller in the U.S., saw its shares start trading for the first time Friday. Missed it? Don’t worry — after the fuss over GoPro (GPRO), other investors did, too.
Shares of Michaels are barely pulling ahead of their $17-a-share offering price, hovering around $17.10 in midday trading. The weak trading is happening even though the shares were sold to initial investors at the low end of the expected price range of between $17 and $19 a share.
The deal, though, gives Michaels a market value of $3.5 billion, which exceeds extreme-sports camera maker GoPro’s $3 billion market value at its offering price of $24 a share.
But Michael’s market cap edge over GoPro didn’t last long. Thanks to a powerful two-day rally, leaving GoPro’s shares at $38.06 at midday trading, the camera maker is now worth $4.7 billion.
So the bottom line: If you’re going to go public, don’t compete with a company that sells cameras used to make videos of skateboarding dogs.