A still image from a Chewy.com promotional video.
Source: Chewy.com
Chewy.com, the online pet product retailer owned by PetSmart, filed documents with regulators on Monday to prepare for an initial public offering.
PetSmart acquired Chewy in 2017 for roughly $3 billion to add an online business to complement its store base, as trends shifted online. But as the two business lines diverged, PetSmart transferred part of its stake in Chewy in a move that set the groundwork for a potential IPO.
The equity transfer sparked a lawsuit from some of the company’s lenders, which PetSmart earlier this month settled.
Following the IPO, PetSmart will remain majority owner of Chewy following the IPO. It will use proceeds from the IPO for working capital and general corporate purposes, according to the filing.
Chewy did not state how much it expects to raise in the offering. Previously estimates have approximated its valuation at $4.15 billion and $4.75 billion, according S&P Global Ratings.
Chewy, which will list under the ticker “CHWY,” has hired Allen & Company, J.P. Morgan and Morgan Stanley to help lead its IPO.
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