The company is looking to sell 27.7m shares at a price of between $17 and $19, regulatory filings showed.
Blackstone and Bain bought the company for $6bn including around $1.7bn equity with the investment split in half between the two firms, according to PeHUB.
The firms currently own a 93.3 per cent stake with Highfields Capital Management holding 6.2 per cent.
Bain invested in the company from its $10bn 2006-vintage ninth fund, which was generating a 7.7 IRR, data from the Regents of the University of California showed.
Blackstone backed Michaels via its $21.7bn Fund V, which was generating a 5.67 per cent net IRR at the end of December.
The firms attempted to float the company in a $500m IPO in 2012 but cancelled the plans after CEO John Menzer resigned after suffering a stroke.
Michaels operates 1,200 stores in the US and Canada and owns more than 120 Aaron Brothers stores. It posted sales of about $4.6bn last year.
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