Newegg announces IPO, plans for expansion

Newegg announces IPO, plans for expansion

Summary: Online electronics retailer Newegg is going public, launching an IPO estimated at $175 million, according to a filing with the Securities and Exchange Commission today.The retailer has largely been focused on IT products such as hardware, software and peripherals since its launch in 2001 but recently has expanded into the consumer electronics business and products that are targeted at small- to medium-sized businesses.

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Online electronics retailer Newegg is going public, launching an IPO estimated at $175 million, according to a filing with the Securities and Exchange Commission today.

The retailer has largely been focused on IT products such as hardware, software and peripherals since its launch in 2001 but recently has expanded into the consumer electronics business and products that are targeted at small- to medium-sized businesses. It has also expanded beyond the U.S., moving into Canada and China.

Last year, it reported net sales of $2.1 billion. In its SEC filing, the company summed up its outlook on the growth potential for online retail sales in its core target markets:

We believe that IT and CE products are well suited for online sales because these products often require a potential customer to research, evaluate and compare a large amount of technical information, product features and consumer reviews, tasks which can be much more comprehensively and efficiently accomplished online. In addition, buying patterns are generally transitioning online as broadband adoption increases, fulfillment capabilities of online retailers become more reliable and consumers and businesses face continuing pressure to save money.

In its filing, the company said it would use proceeds from the offering to expand international operations, including the building of its headquarters in Asia and a regional warehouse, pay off debt and other improvements, such as IT infrastructure upgrades, branding and marketing campaigns and acquisitions of or investments in "complementary businesses, products, websites or technologies."

The company noted that it is not presently engaged in any discussions about such acquisitions or investments.

Topics: Start-Ups, Broadband, E-Commerce, China

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6 comments
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  • Yay

    I've always been a big fan of Newegg. Great company. I'll probably drop
    a few hundred once their stock is available for public purchase.
    WarhavenSC
    • Best Customer Service Anywhere Will

      hopefully transfer to further profitability. I will often pay a little more for an item at Newegg than buy it elsewhere just because I know Newegg will make me happy if I have problems. Free return shipping, waive restock fees and other stuff have made me a loyal customer. Every time I've been upset and contacted NE with a pessimistic outlook I've ended the chat session or phone call happy.
      I'll be buying some stock as well.
      snafu_77
  • they are really dominating hubbies computer purchases on the internet

    i have been using them for almost 90% of my electronics
    purchases especially computer hardware
    vachi
  • Well there goes...

    the best service I've seen in any company. It's guaranteed, for if a company has to work for their money, they do what they can, which in their case, make a top-notch service and support. Once the go IPO, they start going downhill. Become a monopoly? Time to go elsewhere.

    Sad

    - Kc
    kcredden2
  • RE: Newegg announces IPO, plans for expansion

    Love to shop there. Hope it doesn't change anything.
    ITOdeed
  • RE: Newegg announces IPO, plans for expansion

    fhbfax,good post!
    makrekdw87-24353647461810270232220173141352