Chewy Debuts With An Impressive 70% Rise In IPO – Market News Store

Chewy Debuts With An Impressive 70% Rise In IPO

After pricing its IPO at USD 22 per share on Thursday, Chewy shot up by around 80 per cent to close at around USD 39 per share in early trading on Friday. Chewy’s IPO of USD 22 per share was also listed as above the expected mark. PetSmart bought shares of Chewy back in 2017 worth USD 3.4 billion. Chewy is now valued at USD 15 billion after the stock sale that followed the remarkable surge in prices.

PetSmart, ever since the 2017 trading, are Chewy’s majority owner and continue to be the same after Friday’s stock sales, holding 70 per cent of the company’s stakes and 77 per cent controlling interest in the company. The company is now trading under the ticker symbol CHWY on the New York Stock Exchange and has raised USD 1 billion in stock sales as of now. Company has also reported a downfall in the losses, but the losses are still big enough to be a cause of concern. The company reported USD 268 million loss in 2018, down from USD 338 million a year before that. The company has been doing fairly well despite stern competition from giants Amazon (AMZN) and General Mills (GIS).

All the stock exchange markets closed on a low on Friday as tech companies all suffered big time. Most of the losses were accredited to the trade war between US and China. Tensions are continuously mounting as Google too stepped in to request for a turnover of the Huawei ban. Google cited that keeping Huawei banned will pose a major threat to the National Security. Smartphone devices that don’t use Android will leave the data vulnerable for a breach. However, the government seems to be unmoved by Google’s explanations as the ban looks as solid as it was on the very first day.

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