PetSmart’s Chewy will start trading on Friday. (Chewy)

PetSmart’s online retailer Chewy priced its initial public offering (IPO) at $22 a share, higher than its target, ahead of trading scheduled to start later Friday.

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The online store for pet product needs was valued at around $8.77 billion, Reuters reported. Between 2012 and 2018, Chewy’s sales increased from $26 million to $3.5 billion. However in 2018, Chewy reported a net loss of $268 million from $338 million in 2017.

Chewy sold more shares than expected — about 46.5 million were sold in the IPO, up from the planned 41.6 million. PetSmart will receive about $900 million from the sale. Chewy said it will use the money raised, $123.2 million, for its working capital and general corporate purposes.

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