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Chewy Inc. Announces Stock Offering and Share Repurchase Plan

Chewy Inc. has priced an underwritten offering of 16.67 million shares at $30 each by its largest shareholder, BC Partners Advisors. The company will also repurchase $300 million in shares, potentially affecting its stock performance in the upcoming months.

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AI Rating:   5

The report outlines Chewy Inc.'s offering of approximately 16.67 million shares of its Class A common stock at a price of $30.00 per share, which has been initiated by Buddy Chester Sub LLC, affiliated with BC Partners Advisors, Chewy's largest shareholder. This action could dilute existing shareholders, thus affecting stock prices negatively.

Additionally, while Chewy will not sell any shares in the offering, it is set to repurchase $300 million of its Class A common stock at the same price as the offering. This repurchase may signal confidence in the company's future and could positively influence stock demand and pricing in the long run.

Prior to these actions, Chewy had around 143 million shares of Class A and 275 million shares of Class B outstanding. If the offering and repurchase are completed, shares of Class A will increase to 160 million, and Class B shares will decrease to 248 million, impacting the overall share structure and possibly its market perception.

Stocks:  CHWY