Jun 14, 2019

Chewy IPO raises $1 billion

Dan Primack, author of Pro Rata

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

Go deeper

George Floyd updates

Protesters in Washington, D.C. on June 6. Photo: Samuel Corum/Getty Images

Thousands of demonstrators are gathering in cities across the U.S. and around the world to protest the killing of George Floyd. Huge crowds have assembled in Washington, D.C., Philadelphia and Chicago for full-day events.

Why it matters: Twelve days of nationwide protest in the U.S. has built pressure for states to make new changes on what kind of force law enforcement can use on civilians and prompted officials to review police conduct.

Updated 28 mins ago - Politics & Policy

Coronavirus dashboard

Illustration: Sarah Grillo/Axios

  1. Global: Total confirmed cases as of 7:30 p.m. ET: 6,852,810 — Total deaths: 398,211 — Total recoveries — 3,071,142Map.
  2. U.S.: Total confirmed cases as of 7:30 p.m. ET: 1,917,080 — Total deaths: 109,702 — Total recoveries: 500,849 — Total tested: 19,778,873Map.
  3. Public health: Why the pandemic is hitting minorities harder — Coronavirus curve rises in FloridaHow racism threatens the response to the pandemic Some people are drinking and inhaling cleaning products in attempt to fight the virus.
  4. Tech: The pandemic is accelerating next-generation disease diagnostics — Robotics looks to copy software-as-a-service model.
  5. Business: Budgets busted by coronavirus make it harder for cities to address inequality Sports, film production in California to resume June 12 after 3-month hiatus.
  6. Education: Students and teachers flunked remote learning.

Why the coronavirus pandemic is hitting minorities harder

Illustration: Aïda Amer/Axios. Photo: Mark Makela/Getty Images

The coronavirus’ disproportionate impact on black and Latino communities has become a defining part of the pandemic.

The big picture: That's a result of myriad longstanding inequities within the health care system and the American economy.