Home Finance and Investments Major investor sells $500 million in Chewy stock

Major investor sells $500 million in Chewy stock

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Major Investor Sells $500 Million In Chewy Stock

Important points

An affiliate of Chewy’s largest shareholder is selling $500 million worth of stock. The company also announced that it would purchase and retire $50 million worth of stock. The $50 million purchase is in addition to the company’s ongoing share repurchase program. In May.

Online pet supplies retailer Chewy (CHWY) announced that a company related to its largest shareholder will sell $500 million worth of stock.

The company announced that Buddy Chester Sub LLC, an entity associated with funds advised by top investor BC Partners Advisors LP, is making an initial public offering valued at $500 million. In addition, the underwriters have a 30-day option to acquire an additional $75 million in equity.

Chewy said it would also buy back $50 million worth of stock from Buddy Chester. These shares will be priced at the price paid by the underwriters and will be “retired and canceled upon completion of the concurrent repurchase.”

Chewy added that the $50 million acquisition is being conducted separately from the company’s current $500 million stock repurchase program, which began in May, and will not be impacted by that transaction.

Chewy stock initially fell on Thursday morning, but has since reversed and recently risen slightly. They added nearly 40% in value this year. The stock price has been influenced by cryptic social media posts and a short-term investment by meme stock hero Keith Gill, aka Roaring Kitty.

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