BUZZ-Chewy slips as top shareholder's stake sale priced

Reuters12-12

** Shares of online pet products retailer Chewy down 2.9% premarket after overnight secondary offering priced ** Co late Weds announced offering of ~15.9 mln shares sold by BC Partners, its largest shareholder, with Barclays as sole underwriter

** The $500 mln offering priced at $31.54, 3.1% discount to last sale

** In addition, CHWY concurrently repurchasing $50 mln worth of shares from the private equity firm ** With the transactions, BC Partners offloading roughly 17.5 mln shares, trimming holdings to about 229 mln shares, per the SEC prospectus filing

** Co had ~408.8 mln total shares outstanding as of Dec 10, per the filing, giving it $13.3 bln market cap

** BC Partners acquired PetSmart in $8.7 bln deal in 2014. PetSmart then bought Chewy in 2017 and took co public in a 2019 IPO priced at $22

** Through Weds, CHWY shares up 38% YTD ** On Dec 4, co posted Q3 adj EPS of $0.01 and rev of $2.9 bln vs consensus estimates of $0.08/$2.9 bln - LSEG

(Lance Tupper is a Reuters market analyst. The views expressed are his own) ((lance.tupper@tr.com 1-646-279-6380))

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