[ad_1]
Chewy, which was purchased by the PetSmart retailer in 2017 for nearly $ 3.4 billion in 2017, set its initial public offering at $ 22 per share on Thursday. This exceeds expectations and gives Chewy a value of $ 8.8 billion.
The company will raise $ 1 billion from the sale of shares and will trade on the New York Stock Exchange under the ticker symbol CHWY.
Chewy is growing rapidly, despite the competitive threats of Amazon (AMZN) as well as the food giant General Mills (GIS), which recently acquired the pet seller Blue Buffalo.
Sales climbed 68% last year to more than $ 3.5 billion. But the business always loses money. It recorded a net loss of $ 268 million in 2018, after a loss of $ 338 million a year earlier.
Chewy is the latest high-profile unicorn IPO to be successfully launched, in the footsteps of the Fiverr Economic Network on Thursday and the cybersecurity firm CrowdStrike (CRWD) earlier this week.
Beyond the meat (BYND), videoconferencing company Zoom (ZM) and software company PagerDuty (PD) since their initial public offering, which indicates that the market for IPOs in the broad sense is still strong, despite Uber (UBER) and Lyft (LYFT).
Chewy hopes it will be the next Beyond Meat and not another flop like Uber.
The company may also face adverse comparisons with Pets.com, one of the most publicized Internet bubble disasters in the late 1990s and early 2000s.
[ad_2]
Source link