Jun 14, 2019

Chewy IPO raises $1 billion

Illustration: Sarah Grillo/Axios

Chewy, an online pet food and supplies retailer owned by PetSmart, raised $1 billion in its IPO.

Why it matters: It's a massive valuation bump from the $3.3 billion that PetSmart, owned by BC Partners, paid to buy Chewy in 2017.

By the numbers: The company priced 46.5 million shares at $22, above its upwardly-revised range, for an initial market cap of around $8.77 billion.

  • The bull case: This is a very sticky subscription service in an age of ubiquitous e-commerce (i.e., it operates in a very different world than did Pets.com). Plus, it's managed to consistently outpace Amazon in its segment.
  • The bear case: This is partially around profits, or lack thereof, but more around a lopsided governance structure whereby BC Partners/PetSmart could maintain control of Chewy with as little as a 10% equity stake.

Go deeper: PetSmart's unprofitable online pet store Chewy to go public this week

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In photos: India welcomes president with massive "Namaste Trump" rally

First Lady Melania Trump, President Trump and India's Prime Minister Narendra Modi attend the "Namaste Trump" rally at Sardar Patel Stadium in Motera, on the outskirts of Ahmedabad, on Monday. Photo: Mandel Ngan/AFP via Getty Images

President Trump told a massive crowd at a rally in Ahmedabad, northwest India, Monday he hopes to reach a trade deal with his ""true friend" Prime Minister Narendra Modi during his two-day visit to the country "except he's a very tough negotiator."

Why it matters: The countries are forging deeper ties, particularly in the military dimension, as India’s location, size and economic growth making it the "obvious counterweight to China" for American policymakers, per Axios' Dave Lawler and Zachary Basu. Prime Minister Narendra Modi demonstrated the importance of the visit with a "Namaste Trump Rally" at a packed 110,000-capacity Sardar Patel Stadium in Ahmedabad — the world's largest cricket venue.

Go deeperArrowUpdated 19 mins ago - World

Coronavirus spreads to more countries as cases in South Korea surge

Data: The Center for Systems Science and Engineering at Johns Hopkins, the CDC, and China's Health Ministry. Note: China numbers are for the mainland only and U.S. numbers include repatriated citizens.

Afghanistan, Kuwait and Bahrain each reported their first cases of the novel coronavirus, Al Jazeera first reported, as infections in South Korea, Italy and mainland China continued to increase on Monday.

The big picture: As South Korea and Italy stepped up emergency measures in efforts to thwart the spread of the virus, World Health Organization officials expressed concern about infections with no clear link to China. COVID-19 has killed at least 2,619 people and infected almost 80,000 others, with all but 27 deaths occurring in mainland China.

Go deeperArrowUpdated 32 mins ago - Health

Sanders reveals free childcare plan for preschoolers

Democratic presidential candidate Sen. Bernie Sanders speaks during a campaign rally on Saturday in El Paso, Texas. Photo: Cengiz Yar/Getty Images

Democratic presidential candidate Sen. Bernie Sanders announced on CBS' "60 Minutes" Sunday a new plan to guarantee free child care and pre-kindergarten to all American children from infancy to age four.

Details: In the wide-ranging interview, Sanders told Anderson Cooper he planned to pay for universal childcare with a wealth tax. "It's taxes on billionaires," he said.

Go deeperArrowUpdated 6 hours ago - Politics & Policy