Chewy stock falls after $1 billion share offering announcement

Published 23/06/2025, 21:26
© Reuters.

Investing.com -- Chewy Inc (NYSE:CHWY) stock fell 4% after the pet products retailer announced that its largest shareholder would sell $1 billion worth of Class A common stock in a public offering.

The selling stockholder, Buddy Chester Sub LLC, an entity affiliated with funds advised by BC Partners PE, LP, also intends to grant underwriters a 30-day option to purchase up to an additional $150 million of shares. Chewy will not receive any proceeds from the sale as it is not selling any shares in the offering.

Separately, Chewy has agreed to purchase $100 million of Class A common stock from the selling stockholder at the same price per share that underwriters will pay in the offering. The repurchased shares will be cancelled and retired upon completion of the transaction, which was approved by a special committee of Chewy’s Board of Directors consisting of independent directors not affiliated with BC Partners.

The company noted that this repurchase is separate from its existing $500 million share repurchase program authorized on May 24, 2024, which remains unaffected by this transaction. While the offering is not conditioned upon the closing of the concurrent repurchase, the repurchase is contingent on the offering’s completion.

BC Partners remains Chewy’s largest shareholder. The offering is subject to market and other conditions, with no guarantee regarding its completion timeline.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.