Chewy slips as top shareholder's stake sale priced

Chewy

12/12/2024 12:33

** Shares of online pet products retailer Chewy  CHWY.N  down
2.9% premarket to $31.60 after overnight secondary offering
priced
** Co late Weds announced offering of ~15.9 mln shares sold by
BC Partners, its largest shareholder, with Barclays as sole
underwriter
    ** The $500 mln offering priced at $31.54, 3.1% discount to
last sale
    ** In addition, CHWY concurrently repurchasing $50 mln worth
of shares from the private equity firm
** With the transactions, BC Partners offloading roughly 17.5
mln shares, trimming holdings to about 229 mln shares, per the
SEC prospectus filing
    ** Co had ~408.8 mln total shares outstanding as of Dec 10, 
per the filing, giving it $13.3 bln market cap
    ** BC Partners acquired PetSmart in $8.7 bln deal in 2014.
PetSmart then bought Chewy in 2017 and took co public in a 2019
IPO priced at $22
    ** Through Weds, CHWY shares up 38% YTD
** On Dec 4, co posted Q3 adj EPS of $0.01 and rev of $2.9 bln
vs consensus estimates of $0.08/$2.9 bln - LSEG

 (Lance Tupper is a Reuters market analyst. The views expressed
are his own)
 ((lance.tupper@tr.com 1-646-279-6380))