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UPDATE 1-Crafts retailer Michaels IPO aims to raise up to $528 mln

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June 16 (Reuters) - Arts and crafts retailer Michaels Companies Inc said it expected to raise up to $528 million in its initial public offering.

Michaels, which was taken private by Blackstone Group LP and Bain Capital LP for $6 billion in 2006, filed for an IPO of up to $500 million in March 2012.

That, however, was postponed after then-Chief Executive John Menzer had a stroke and stepped down.

Bain and Blackstone will each own 40.1 percent of Michaels shares after the offering.

The Irving, Texas-based company withdrew the IPO last December after going through a reorganization, immediately refiled under a new name and then updated its registration documents in May.

Michaels, which owns several private brands such as Recollections, Artist's Loft and Loops & Threads, competes with Hobby Lobby Stores Inc, Jo-Ann Stores Inc and Wal-Mart Stores Inc.

Michaels had 1,262 stores, as of May 3, and about $4.6 billion in sales in the year ended Feb. 1, 2014.

The company's offering of 27.8 million shares is expected to be priced at between $17 and $19 each, Michaels said in a filing with the U.S. Securities and Exchange Commission on Monday. (http://r.reuters.com/fym22w)

Michaels said it plans to use the proceeds from the offering to redeem $466 million of Holdco notes, issued in July 2013.

J.P. Morgan and Goldman Sachs & Co are the lead underwriters of the offering.

The company plans to list its stock on the Nasdaq under the symbol "MIK".

(Reporting by Amrutha Gayathri in Bangalore; Editing by Ted Kerr)