The company had initially expected to price its 41.6 million shares
in the range of $17 to $19, but considering the strong investor demand, raised
it to $19 to $21. At the top end of this price range, the company would be
valued at approximately $8.4 billion.
The company is eyeing $870 million in net proceeds from the
IPO, which it says would be used for general corporate purposes.
The Dania Beach, Florida-based firm had recorded $3.5 billion in revenues last year, a 67% jump year-over-year. This is an increase from around $26 million in 2012. However, the company has not been profitable and recorded $267.9 million in 2018.
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According to its SEC filing, for the quarter ended May 5, 2019, the company has projected revenues of $1.11 billion, a 45% increase from the same period last year, helped by customer growth. Chewy also said it expects to cut down its net losses to $29.5 million during this period, which is almost half of what it reported last year.
Founded in 2011, Chewy.com was acquired by retail chain PetSmart in 2017, reportedly for $3.35 billion. It was later spun off, but PetSmart continues to be a major stakeholder in the Chewy.
Chewy says it has over 45,000 products on is website from over 1,600 brands. Almost half of its revenues come from the sale of pet food, while the rest come from medicines and vet care products.