Major Investor Sells Off Half a Billion Dollars in Chewy Stock | Global News Avenue

Online pet supply retailer Chewy (blow) announced that a company tied to its largest shareholder is selling $500 million worth of stock.

Buddy Chester Sub LLC, an entity associated with a fund advised by top investor BC Partners Advisors LP, will conduct a $500 million public offering, the company said. In addition, the underwriters have a 30-day option to purchase an additional $75 million worth of shares.

At the same time, it will buy back $50 million worth of stock from Buddy Chester, Chewy explained. The shares will be priced at the price paid by the underwriters and “will be canceled and retired upon completion of the synchronized repurchase.”

Chewy added that the $50 million acquisition was executed separately from the current $500 million. Share buyback The program, which started in May, will not be affected by the deal.

Chewy’s stock price initially fell Thursday morning, but later reversed course and has recently been trading slightly higher. Their value has increased by nearly 40% this year. Share price affected Mysterious social media posts and short-lived investments by meme stock hero “Roaring Kitten” aka Keith Gill.