Busy week for IPOs
It was a pretty busy week for IPOs. Three companies went public, including cybersecurity firm CrowdStrike (CRWD), which skyrocketed 70% on the first day. Freelancer online platform Fiverr (FVRR) almost doubled on its debut day.
Chewy just raised $1 billion from its IPO
Meanwhile, pet supplier retailer Chewy (CHWY) went public on Friday. The company priced its IPO late Thursday, raising $1 billion. The company will trade under the ticker “CHWY.”
Chewy was acquired by retailer PetSmart in 2017 for $3.35 billion two years back. The pet supplier company priced its IPO at $22 apiece, which is above the expected range. It would value the company at $8.8 billion. Chewy’s stock rose 75.4% in the first few hours of trading on its first day.
Chewy’s growth remains strong, but losses remain high
The company is growing at a fast clip despite stiff competition from the likes of General Mills and Amazon. Chewy generated $3.5 billion in revenue last year, growing a robust 68% year-over-year.
Unfortunately, like most high-profile companies that have gone public this year, the company is deep in the red. Chewy posted a net loss of 268 million in 2018, though, shrinking from a net loss of $338 million it posted in 2017.
After the IPO, Chewy’s parent PetSmart will own around 70% of Chewy’s common stock. The two companies will continue to coordinate purchases, which will help in saving costs, Chewy said in the S-1 it filed with the Securities and Exchange Commission.
The company also said in its S-1 that it will be using the proceeds for working capital and general purposes.