Chewy IPO 2019: what to expect from the next online pet store IPO
Chewy, an online pet store and pet equipment retailer, officially filed IPO documents on April 29e, while waiting to become a publicly traded company with a debut on the Nasdaq.
The company’s shares will become available for trading under the thicker CHWY, while Chewy Inc plans to raise $ 100 million for Class A shares.
Chewy IPO 2019: Company Overview, Estimates and Financial Information
Chewy is estimated to be between $ 22 billion and $ 28 billion within its enterprise value, with over 1,600 different brands and 45,000 miscellaneous pet products within the online pet store Chewy.
The company’s revenue increased from the previous fiscal year 2018, from $ 2 billion to $ 3.53 billion.
However, although Chewy is seeing an increase in revenue generated year on year, the company is also experiencing losses with high cash outflows.
The majority owner of Chewy’s shares will be PetSmart, a company that acquired Chewy, which is why the board of directors will not be independent, deeming that investing in Chewy is riskier as the board can vote to meet the interests of the majority shareholder, which is of course PetSmart.
Why might double-hearted stocks reduce the initial success of Chewy’s IPO?
Chewy could become a controlled entity even if the company aims to go public.
This is the case because Chewy will be issuing double-hearted Class A and Class B shares, which could be a risky endeavor that could potentially affect the success of Chewy’s IPO.
The exact date for Chewy’s IPO has yet to be determined, but what is known from afar is that controlling shareholders with insider shares will have 10 votes for each associated vote. to ordinary shares.
Since decisions made by a non-independent board of directors could work in favor of majority shareholders, the interests of minority shareholders could be harmed along the way.
Disclaimer: The information on this site is provided for discussion purposes only and should not be misinterpreted as investment advice. This information does not in any way constitute a recommendation to buy or sell securities.