and dogs@ (Updates with confirmation from the company, details on proceeds raised)
NEW YORK, June 13 (Reuters) – Chewy Inc said on Thursday it priced its initial public offering at $22 per share, above its target, and sold more stock than originally planned, valuing the online pet products retailer at $8.77 billion.
The IPO raises funds to help manage the debt load of parent company PetSmart, and indicates investor demand for a loss-making but fast-growing e-commerce company to tap into the roughly $70 billion U.S. pet industry market.
Chewy had set a price range of $19 to $21 per share, which was raised earlier this week from $17 to $19 per share.
Some 46.5 million Chewy shares were sold in the IPO, up from the anticipated 41.6 million as PetSmart sold more shares than originally planned.
At $22 per share, PetSmart will receive almost $900 million from the sale of its stock. Chewy raised $123.2 million, which the company has said will be used for working capital and other expenses.
Chewy’s sales have rocketed from $26 million to $3.5 billion between 2012 and 2018. Its 2018 net loss narrowed to $267.9 million from $338.1 million in 2017.
Shares of Chewy are expected to start trading on the New York Stock Exchange on Friday under the symbol “CHWY”.
(Reporting by Joshua Franklin in New York; Editing by Lisa Shumaker)