Chewy, an online pet shop and retailer for pet-related equipment, have officially filed IPO documents on April 29th, waiting to become a publicly traded company with a debut on Nasdaq.
The company’s shares will become available for trading under the thicker CHWY, while Chewy Inc is planning to raise 100 million dollars for A class shares.
Chewy IPO 2019: Company Overview, Estimates and Financial Info
Chewy is estimated at between 22 billion and 28 billion within its enterprise value, having over 1,600 different brands and 45,000 various products for pets within Chewy online pet shop.
The revenue of the company increased in oppose to the previous fiscal year of 2018, rising to 3.53 billion dollars from 2 billion.
However, although Chewy is recording increases in generated revenue year to year, the company is also marking losses with high cash outflows.
The majority holder of Chewy shares will be PetSmart, a company that acquired Chewy, which is why the board of directors won’t be independent, deeming investing in Chewy riskier as the board may vote to meet the interest of the majority shareholder, which is of course PetSmart.
Chewy might become a controlled entity even though the company is aiming to become publicly traded.
This is the case because Chewy will be issuing dual-core shares, class A and class B, which might be a risky venture that could potentially affect the success of Chewy IPO.
The exact date of Chewy IPO is yet to be determined, but what is known by far is that the majority shareholders with insider shares will have 10 votes at every vote that goes with regular shares.
Since decisions made by a non-independent board of directors might work in favor of majority shareholders, minority shareholders’ interests might be damaged along the way.