Published: Sun, June 16, 2019
Markets | By Otis Pena

PetSmart’s Chewy wends public at $1 billion blockbuster IPO

PetSmart’s Chewy wends public at $1 billion blockbuster IPO

According to a company spokeswoman, at $22 per share, the PetSmart, parent organization of Chewy Inc., would receive some $900 million from the sales of the stocks, while Chewy Inc. However in 2018, Chewy reported a net loss of $268 million from $338 million in 2017. The IPO values Chewy at nearly three times the $3.35 billion PetSmart paid for the company.

The online pet food retailer's CEO sees a brilliant future for the company.

Given the scale of Chewy Inc.'s sales surge, which had rocketed to $3.5 billion from initial $26 million back in 2012, the pet products retailer would likely to tap more money onto a $70 billion United States pet product industry, analysts suggested.

Chewy, which offers products for dogs, cats, reptiles, birds and other pets, has 24-hour customer service and is known for sending customers surprise pet portraits as well as flowers when pets die. What's more, only two years after the fact, PetSmart, which is possessed by a gathering of private value financial specialists driven by BC Partners, spun Chewy off into an open organization on Friday. Chewy prides itself on being there for pet lovers and creating experiences for them, according to Cohen who co-founded Chewy with Michael Day in 2011.

"There's still lots of penetration and growth to be had just within the USA market, there's continuing to expand internationally", Cohen, who stepped down as CEO of Chewy in 2018, said in an interview earlier this week.

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It is not clear how many of those employees own Chewy stock; a Chewy representative said the company does not discuss employee stock options. Its bonds due in 2023 and 2025 were among the top gainers in the USA high-yield market on Friday, according to Trace bond trading data.

The stock is trading on the NYSE under the symbol "CHWY".

Chewy is the latest high-profile unicorn IPO to launch with a smash, following in the footsteps of gig economy network Fiverr on Thursday and cybersecurity firm CrowdStrike earlier this week.

Morgan Stanley, JPMorgan, Allen & Co and Bank of America Merrill Lynch led the 12-member underwriting team.

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