Crafts retailer Etsy says IPO could raise up to $267 million

Online crafts retailer Etsy Inc. says it expects to raise as much as $267 million from an initial public offering of stock that values the company at nearly $1.8 billion.

The New York company says its IPO will include 16.7 million shares, and it expects them to price at $14 to $16 each.

Etsy said Tuesday in a regulatory filing that it was selling 13.3 million of the shares. If the shares price at $16, Etsy’s market value would be $1.78 billion.

The other 3.3 million shares in the IPO are being sold by company stockholders. The main sellers are venture capitalists James Breyer of Accel Partners and Fred Wilson of Union Square Ventures. Both investors have seats on Etsy’s board of directors. Both will remain large stockholders. Breyer expects to own a 25% stake in Etsy after the IPO, and Wilson’s stake will be about half that large.

The underwriters of the IPO will have the option to buy an additional 2.5 million shares from the stockholders.