As part of the plan, Amazon has agreed to purchase 100,000 electric delivery vans from vehicle manufacturer Rivian.Technologyread more
The plan will allow Medicare to negotiate lower prices on as many as 250 drugs and apply those discounts to private health plans.Health and Scienceread more
Hedge fund titan Leon Cooperman said he's concerned about a shift to the left in the political landscape, which could harm the economy and the stock market.Delivering Alpharead more
Microsoft has new services that can provide gaming revenue on top of console sales.Technologyread more
Nelson Peltz and David Taylor, once adversaries over the direction of Procter & Gamble, met Thursday as allies taking a victory lap for the company's stunning turnaround.Delivering Alpharead more
More than half of the patients have been younger than 25 and 16% are younger than 18, CDC principal deputy director Anne Schuchat said.Health and Scienceread more
Billionaire investor Leon Cooperman on Thursday said he believes that the Federal Reserve is "screwing the savers."Delivering Alpharead more
President Donald Trump on Thursday filed a lawsuit against Manhattan District Attorney Cyrus Vance Jr. and his longtime accounting firm Mazars.Politicsread more
Trian Partners co-founder and CEO Nelson Peltz explained to CNBC on Thursday the backstory to his firm's position in struggling General Electric.Delivering Alpharead more
Here's a look inside Apple's flagship Fifth Avenue Store, known as the "cube," in New York City. It reopens on Friday and has been closed since 2017 for renovations.Technologyread more
[email protected] (Adds background, expert comment)
June 14 (Reuters) - Shares of Chewy Inc soared 63% in their debut, giving the online pet products retailer a market value of $14.35 billion, more than four times the price PetSmart paid for it in 2017.
Shares opened at $36 and rose as high as $40.75. The company's IPO price was $22 per share.
Indicating solid investor appetite for a piece of the over $70 billion U.S. pet market, the offering was priced higher than the expected range and the company sold more shares than originally planned.
The company had set a price range of $19 to $21 per share, which was raised earlier this week from $17 to $19 per share.
Chewy raised $123.2 million from the offering and parent PetSmart will receive nearly $900 million.
The online retailer of puppy shampoo and cat treats, which has 11 million customers, is betting on the "pet humanization" trend where owners splurge on their pets, whom they consider part of the family.
The majority of the stock was sold by PetSmart, owned by private equity firm BC Partners, as the largest U.S. pet products retailer looks to pare its debt pile.
Chewy said its revenue surged about 68% to $3.53 billion in 2018 from a year earlier, while net loss narrowed to $267.9 million from $338.1 million.
The company, which is yet to make a profit, in its IPO pitch also highlighted the industry's resilience during downturns.
However, the market is turning fiercely competitive.
Dania Beach, Florida-based Chewy competes with traditional brick-and-mortar retailers such as Walmart Inc and Petco Animal Supplies Inc, as well as Amazon Inc and online seller PetMed Express Inc.
Chewy holds a 45% share of the online dog and cat food market, matching Amazon's share, according to research firm 1010data.
Last July, Chewy launched its pharmacy business, pushing into the lucrative prescription drugs market that has long been the turf of veterinarians and their partners.
"If (Chewy) can clear legal and registration hurdles, they'll have no trouble competing out there," said Phillip Cooper, an independent consultant who advises pet industry investors. "Chewy has a tremendous following at the consumer level... these guys know how many dogs people have, what their ages are and if you lose a dog they send a bouquet of flowers!"
The blockbuster IPO follows disappointing debuts of Uber Technologies and Lyft. Other IPOs of this year such as those of Pinterest Inc, vegan burger maker Beyond Meat Inc and video-conferencing startup Zoom Video Communications Inc have been trading higher.
PetSmart and BC Partners will retain control of Chewy through Class B shares, which carry more voting power.
(Reporting by Manas Mishra and Tamara Mathias in Bengaluru; Editing by Sriraj Kalluvila)