June 12, 2019 / 4:27 PM / 8 days ago

Chewy raises IPO price range amid strong investor demand

(Reuters) - Online pet products retailer Chewy Inc raised the price range of its initial public offering on Wednesday, indicating strong investor demand and valuing the company at about $8.4 billion at the top end of the range.

The company’s IPO of 41.6 million shares is expected to be priced in the range of $19 to $21 per share, up from $17 to $19 per share, its regulatory filing showed.

The company could raise up to $873.6 million in net proceeds, which it intends to use for general corporate purposes.

PetSmart Inc-backed Chewy.com said its net loss narrowed to $267.9 million in 2018 from $338.1 million in 2017, while sales soared from $26 million to $3.5 billion between 2012 and 2018.

Shares of Chewy are expected to start trading on the New York Stock Exchange on Friday and its valuation was calculated based on 398.6 million outstanding shares.

Morgan Stanley, JPMorgan, Allen & Co and Bank of America Merrill Lynch led the 12-member underwriting team.

Reporting by Bharath Manjesh in Bengaluru; Editing by James Emmanuel and Anil D'Silva

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