3:23 PM, Apr 29, 2019 — Chewy, the online pet-food retailer that’s owned by closely held PetSmart, filed paperwork on Monday to launch an initial public offering.
The Dania Beach, Fla.-based company set a placeholder $100 million aggregate offering price in the filing with the Securities and Exchange Commission. Chewy plans to list its shares under the ticker symbol CHWY.
The company plans to use the IPO’s proceeds for working capital and general corporate purposes, according to the filing. Class A common shares will have one vote each while each Class B share will have 10 votes, Chewy said in the filing. Neither a timeframe nor pricing for the offer were disclosed.
Chewy reported a $267.9 million net loss in fiscal 2018 on sales of $3.53 billion, the filing said. Other loss-making companies that have gone public this year include Pinterest (PINS) and Lyft (LYFT).
“We have a history of losses and expect to generate operating losses as we continue to expand our business,” Chewy said in its filing.
PetSmart, owned by private-equity firm Argos Holdings, acquired Chewy for $3 billion in 2017. The Phoenix-based retailer then transferred Chewy shares to separate entities in 2018, which resulted in a lawsuit from the lenders of PetSmart’s private-equity owners, Bloomberg reported.
The lenders said PetSmart was insolvent when the transfer was made, and it was fraudulent. PetSmart earlier this month received approval from more than half of its lenders to retroactively back the transfer.
CapRe, which owns $600 million of PetSmart bonds and $80 million in term loans from the retailer, is seeking to continue its lawsuit over the transfer, Bloomberg said in April.