PetSmart’s online business, Chewy.com, files to go public

A still image coming from a Chewy.com promotional video.

Source: Chewy.com

Chewy.com, the online pet product retailer owned by PetSmart, filed documents with regulators on Monday to prepare for an initial public offering.

Chewy reported $3.5 billion in sales for fiscal 2018, up coming from $2.1 billion in 2017. For the same period, This kind of reported a net loss of $268 million, narrowing coming from a net loss of $338 million.

Chewy did not state how much This kind of expects to raise inside the offering. Previous estimates have pegged its valuation at between $4.15 billion in addition to also $4.75 billion, according S&P Global Ratings.

PetSmart acquired Chewy in 2017 for roughly $3 billion to add an online business to complement its store base, as trends shifted online. however as the two business lines diverged, PetSmart transferred part of its stake in Chewy in a move in which set the groundwork for a potential IPO.

The equity transfer sparked a lawsuit coming from some of the company’s lenders, which PetSmart settled earlier This kind of month.

Following the IPO, PetSmart will remain majority owner of Chewy. This kind of will use proceeds coming from the IPO for working capital in addition to also general corporate purposes, according to the filing.

Chewy was founded in 2011 by Ryan Cohen in addition to also Michael Day. This kind of has distinguished itself coming from many of its competitors with customer service in which includes 24/7 access in addition to also two-day shipping of online orders.

Since its sale to PetSmart, Chewy has expanded its private label in addition to also launched “Chewy Pharmacy,” an online pet pharmacy.

Cohen last year stepped down as CEO of the company. He was succeeded by Sumit Singh, formerly Chewy’s chief operating officer, who previously served as director of Amazon Fresh in addition to also worked for Dell.

Chewy joins a long list of unprofitable companies in which have either filed for or are planning IPOs, including Uber, Pinterest in addition to also SurveyMonkey. Last October, the percentage of unprofitable U.S. companies in which went public reached 83%, topping numbers seen even inside the dot-com bubble.

As a pet retailer, Chewy’s IPO plans sparked jokes Monday afternoon on Twitter referencing one of the most famous unprofitable victims of the dot-com frenzy − Pets.com.

Chewy, which will list under the ticker “CHWY,” has hired Allen & Co., J.P. Morgan in addition to also Morgan Stanley to help lead its IPO.

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