Chewy (CHWY) shares climb 59 percent in initial public offering (IPO)

Chewy IPO
Source: NYSE/Twitter

Chewy (NYSE: CHWY), the online pet products retailer owned by Petsmart, had a successful initial public offering (IPO) on Friday.

Its stock price soared as much as $41.34 per share before settling to $34.99 per share, up 59 percent from its offering price of $22 per share.

Chewy and Petsmart offered a total of 46.5 million shares of itts Class A common stock and raised around $1 billion from its IPO. The company plans to use the net proceeds from its market debut for working capital and general corporate purposes.

After the IPO, Petsmart will remain Chewy’s largest shareholder, owning 70 percent of its Class A shares and holding 77 percent voting power.

Renaissance Capital’s Kathleen Smith noted that Chewy is benefiting from “the large market of 85 million households who love their pets.

Recent IPOs

The online pet products retailer follows the trading debuts of high-profile unicorn companies including Beyond Meat (NASDAQ: BYNBD), CrowdStrike (NASDAQ: CRWD),  Zoom Video Communications (NASDAQ: ZM) and Pinterest (NYSE: PINS).

These companies also performed well during its market debut. Beyond Meat and Crowdstrike went up over 21 percent and 70 percent, respectively Zoom soar more than 72 percent while Pinterest surged over 28 percent.

On Friday, the stock price of Beyond Meat increased over 7 percent to $151.48 per share, CrowdStrike declined more than 5 percent to $64.16 each, Zoom dropped less than one percent to $100.29 while Pinterest climbed nearly 2 percent to $27.41 each.

Ride-sharing companies Lyft and Uber also had their IPOs in March and May respectively.

Lyft gained 9 percent during its trading debut but failed to convince investors about its future growth. As of Friday, its stock was down to $60.96 from its offering price of $72 per share.

Uber had a disappointing IPO as its shares plunged 8 percent from its offering price of $45 to $41.57 each. Its stock closed $43.23, down by 2.44 percent.