Chewy’s IPO Details – A Can’t-Miss IPO in Millennial-Fueled Pet Industry
While I was researching a project on Monday, a screaming headline scrolled across my PC’s newswire feed.
“Breaking News: PetSmart … Moves to Take Chewy Public.”
As soon as I saw the headline, my fingers froze above the keyboard.
I then reread it and immediately clicked the article’s link to see the initial public offering (IPO) details.
You see, I’m a pet parent.
And like so many pet parents, we spend a notable amount of money to care for our family dog.
I’m quite familiar with Chewy.com.
I regularly shop at its website.
From specialty foods to lavender-scented shampoo, no expense is spared for our fur baby.
And I’m not alone.
According to the American Pet Products Association (APPA), Americans are spending more on pets than ever before.
In 2018, it was a record-breaking $72 billion.
And it’s not going to stop there.
Here’s one word why:
Millennials and the $72 Billion Pet Industry
“Millennials continue to be the largest pet-owning demographic, and this shows in the data,” said Bob Vetere, president and CEO of APPA.
“We know this generation is willing to pay more for quality products and services to improve the health and well-being of their pets,” he added.
So, with millennials fueling this industry’s future growth, an IPO like Chewy is well positioned to capture market share.
Founded in 2011, the Dania Beach, Florida, company is the leading online retailer of pet food and products.
Bought by PetSmart in 2017 for $3.4 billion, Chewy has since established itself as the go-to online retailer for pet supplies.
Here’s what Chewy has to offer:
- Over 10,000 employees.
- Over 4 million square feet of fulfillment space.
- Over 1,600 brands available for purchase.
- Thirteen locations across the U.S. in Florida, Massachusetts, Arizona, Indiana, Kentucky, Nevada, Pennsylvania, Texas and more to come.
- Dedicated 24-hour customer service.
- Unconditional 100% satisfaction guaranteed policy on every order.
Chewy’s mission is to become the most trusted and convenient online destination for pet parents, vets and service providers.
Per the company, its “success is measured by the happiness of the people and pets they serve, not simply by the amount of pet supplies they deliver.”
How to Participate in the IPO Boom
If Chewy’s IPO debut goes as planned, the online retailer will trade under the ticker symbol CHWY.
In the meantime, a promising way to participate in the IPO boom we’re witnessing right now is the Renaissance IPO ETF (NYSE: IPO).
This exchange-traded fund (ETF) provides investors with exposure to newly public companies.
To demonstrate how active this IPO ETF is, Pinterest and Zoom Video Communications were just included in it. Those companies only went public a couple weeks ago.
So, hold tight as we ride this wave of promising IPOs.
Until next time,
Director of Investment Research, Banyan Hill Publishing