Chewy Updates Potential Pricing for Unicorn IPO

By Chris Lange Updated Jan 6, 3:44AM EST · Published Jun 13, 1:00PM EDT

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Chewy Updates Potential Pricing for Unicorn IPO — © MadKruben / Getty Images

Chewy has registered an amended S-1 form with the U.S. Securities and Exchange Commission (SEC) for its initial public offering (IPO). The firm intends to price its 41.6 million shares in the range of $19 to $21, with an overallotment option for an additional 6.24 million shares. At the maximum price, the entire offering is valued up to $1.004 billion. Chewy intends to list its shares on the New York Stock Exchange under the symbol CHWY.

The underwriters for the offering are Morgan Stanley, JPMorgan, Allen, Merrill Lynch, Barclays, Jefferies, RBC Capital Markets, UBS Investment Bank, Wells Fargo Securities, Nomura, Raymond James and William Blair.

Chewy basically runs an online pet store with virtually everything a pet needs. Management believes that it is the preeminent online destination for pet parents as a result of its broad selection of high-quality products, which the firm offers at great prices and delivers with an exceptional level of care and a personal touch.

The firm partners with more than 1,600 of the best and most trusted brands in the pet industry, and it creates and offers its private brands. The loyalty of Chewy’s customers has helped the firm deliver more than 100 million orders since 2011.

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From fiscal years 2012 to 2018, net sales per active customer grew from $223 to $334 and net sales grew from $26 million to $3.5 billion. In addition, Autoship customer sales have grown from $115 million in fiscal 2014 to $2.3 billion in fiscal 2018.

Chewy intends to use the net proceeds from this offering for working capital and general corporate purposes. Note that some of the proceeds from this offering will go toward the selling shareholders.
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About the Author Chris Lange →

Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics.

Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications.

A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.