Chewy shares sold 46.5 million during the Initial Public Offering earlier today. The sale exploded more than the expected 41.6 million shares from the IPO, rolling out a 5 million increase above forecast.
The offering raises just over $1 billion and values the retailer at $8.8 billion.
The IPO expects to use funds to manage the debts of PetSmart, who had a dispute between its lenders and private equity owners earlier this April.
Shares of Chewy started trading on the New York Stock Exchange earlier today under the symbol “CHWY.”
PetSmart, an American retail chain, is engaged in selling pet products and services such as dog grooming and dog training, cat and dog boarding facilities, and daycare. PetSmart acquired Chewy for a little over $3 billion in 2017 to add an online business platform to supplement its store base. This is the step taken by the company towards trends shifting to online. Chewy was founded in 2011 by Ryan Cohen and Michael Day.
When Chewy founder, Ryan Cohen was asked in an interview about how he felt about the company going public, he said: “It feels like my baby is graduating from the college that I never went to.”
Chewy has made a name for itself to over 85 million households who own a pet with customer service that includes high-quality products at competitive prices, 24/7 access, and exceptional two-day shipping of online orders. It calls itself the “largest pure-play pet e-tailer in the United States, offering virtually everything a pet needs. It operates on the reasoning that people are now treating pets like a human.
Chewy seeks to prove that it is profitable, unlike Pets.com. The company says that there’s still room for an old business model to work like new magic.
Chewy reported sales of $3.5 billion in 2018, up 68% from 2017.
Amazon.com Inc and Blue Buffalo Pet Products are the Chewy’s top competitors in the market.