Chewy Inc. (CHWY) has announced the pricing of an underwritten offering of approximately 16.67 million shares of its Class A common stock, with a par value of $0.01 per share. These shares are being sold by Buddy Chester Sub LLC, an entity affiliated with BC Partners Advisors LP, Chewy's largest shareholder, at a public price of $30.00 per share.
The selling stockholder has also granted the underwriter a 30-day option to purchase up to an additional 2.50 million shares of Class A common stock.
Chewy has clarified that it will not sell any shares of its Class A common stock through this offering and will not receive any proceeds from the shares sold by the selling stockholder.
Additionally, as previously announced, Chewy has agreed to buy back $300 million worth of its Class A common stock from the selling stockholder concurrently with the closing of the offering. The purchase price for these shares will match the public offering price paid by the underwriter.
Before the offering and concurrent repurchase, Chewy had approximately 143 million shares of Class A common stock and 275 million shares of Class B common stock outstanding. Upon completion of the offering and concurrent repurchase, Chewy's outstanding shares will comprise around 160 million shares of Class A common stock and approximately 248 million shares of Class B common stock.
The offering and concurrent repurchase are expected to close by September 23, 2024.