Chewy IPO – Pet Supplies Reseller to Raise US 1 Billion
Pet Supplies retailer Chewy is set to raise US$ 1 Billion from its Initial Public Offering on the New York Stock Exchange. The stock will trade under the symbol CHWY. Today being the Chewy IPO day, the company is ringing the opening bell at the The NYSE. The Exchange even allowed a dog on the trading floor for the special occasion.
Shares in the Chewy IPO are priced at US $22.0 per share. This is above the price range that was previously indicated by PetSmart, the parent company of Chewy. PetSmart Inc which initially had a price range of US $17 to US $19 per share increased the range to between US $19 and US $21. PetSmart Inc purchased Chewy for approximately US 3.4 billion back in 2017. The share price of $22 values Chewy at US 8.8 billion.
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Chewy is not yet profitable, having recorded a loss of $268 million for 2018. However losses have been slowing, in 2017, the company recorded a net loss of more than $300 million. Additionally, sales continue to grow despite competition from the likes of Amazon and General Mills. Sales for 2018 was $3.53 billion.
The company is just one of a number of unprofitable companies that have gone public since the start of 2019. Others include, Pintrest, UBER and Beyond Meats.
According to the SEC Filing funds from the IPO will be used to provide working capital and general corporate purposes. Chewy CEO, Sumit Singh who assumed the role last year held positions at Amazon Fresh and Dell. Singh, the former COO, took over the role from Ryan Cohen who founded the company in 2011.
