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Illustration: Sarah Grillo/Axios

Chewy is going public this week, carrying a valuation of about $7 billion, roughly twice what the company sold for in 2017. It too has a special class of shares. Its largest shareholder, BC Partners, will control 98.8% of the votes after the offering is over.

Between the lines: Chewy has never turned a profit, and it burned through $63.3 million of cash in the quarter ending on May 5. At that rate, the $101 million it plans to raise in the IPO will last just 21 weeks.

  • After 13 weeks, BC Partners will be free to sell the rest of its Chewy shares, after unloading shares worth $650 million at the IPO. The private equity shop could reduce its stake to as low as 10% while still retaining control of the company.
  • Chewy's super-voting shares aren't held by visionary founders with a long-term time horizon. Rather, they're held by a private-equity shop with a fiduciary obligation to liquidate its holdings and return the maximum amount of cash to its investors.

The bottom line: Chewy's parent, PetSmart, has more than $8 billion of debt and is under enormous pressure to pay it down. It's therefore reasonable to expect large future sales of Chewy stock. What's less clear is how Chewy can continue to invest in growth without raising substantial debt of its own. Per Chewy's revised S-1, the company has already lined up a $300 million credit line.

Flashback: The degraded stock market through the eyes of a pet food IPO

Go deeper

Scoop: Trump-backed Perdue says he wouldn’t have certified Georgia 2020 results

Perdue at a December 2020 campaign event in Columbus, Ga. Photo: Elijah Nouvelage/Getty Images

Georgia gubernatorial candidate David Perdue wouldn’t have signed the certification of the state’s 2020 election results if he had been governor at the time, the former Senate Republican told Axios.

  • “Not with the information that was available at the time and not with the information that has come out now. They had plenty of time to investigate this. And I wouldn’t have signed it until those things had been investigated and that’s all we were asking for," he said.

Why it matters: There has been no evidence widespread fraud took place in Georgia's elections last year and the November results were counted three times, once by hand.

Beijing Olympics: These countries have announced diplomatic boycotts

Photo: Zhang Qiang/VCG via Getty Images

Several countries, including Canada and Australia, have announced they will join the U.S. in a diplomatic boycott of the 2022 Beijing Winter Olympics to protest human rights abuses committed by China's government.

Driving the news: Leaders have faced pressure from human rights groups and others to boycott the Games, pointing to the ongoing genocide of Uyghurs and other Muslim minorities in China's Xinjiang region and other abuses.

Biden directs federal government to become carbon neutral by 2050

President Biden speaking to reporters outside of the White House on Dec. 8.

President Biden signed an executive order Wednesday that requires the federal government achieve multiple goals related to reducing its carbon emissions, including achieving net-zero emissions by 2050.

Why it matters: Meeting the objectives of the order would require a massive investment by the federal government to buy electric vehicles, upgrade buildings and change how it procures electricity.