E-tailer NewEgg Plans to Go Public with $175 Million IPO
E-tailer NewEgg Plans to Go Public with $175 Million IPO
Posted 09/28/2009 at 11:49am
| by Pulkit Chandna
14
Comments
Print
Buoyed by its strong performance last year, when it raked in $2.1 billion in revenue, online electronics retailer NewEgg is planning a public offering. The company hopes to raise $175 million through its planned initial public offering (IPO), currently awaiting necessary regulatory approval.
Although it has remained profitable ever since its inception in 2001, it is confessedly bracing for stiffer competition from other e-commerce sites, the company said in a filing with the U.S. Securities and Exchange Commission. The IPO is being underwritten by JP Morgan, Bank of America Merrill Lynch and Citi. It hopes to shore up its presence in the Chinese and the Canadian markets using funds from the IPO.
More like this
Balgaroo
September 28, 2009 at 11:33pm
Newegg for life. My only place of computer and electronic business.
devin3627
September 28, 2009 at 5:18pm
http://www.newegg.com/Product/Product.aspx?Item=N82E16800999173
Tony_Wilson
September 28, 2009 at 5:15pm
THIER PRICES ALWAYS SEEMED REASONABLE AND THE FACT THAT YOU CAN READ SO MANY USER REVIEWS IS NICE. I ALSO LIKE HOW SOME OF THE COMPANIES WILL REPLY TO NEGATIVE REVIEWS OF THIER PRODUCTS AND OFFER YOU A TICKET # TO CONTACT THEM TO FIX THE PROBLEM. THATS NICE. I DONT THINK THEY WILL HAVE ALOT OF PROBLEMS OR CHANGE ANYTHING BECAUSE UNLESS THE INVESTORS OWN 51% OR MORE THEY VIRTUALLY HAVE NO SAY SO IN WHAT HAPPENS THERE. GL NEWEGG
Tony_Wilson
September 29, 2009 at 5:44pm
Sorry I was kind of loopy after some cough-syrup with hydracodine in it. My head was in the clouds to say the least.
Psybear
September 28, 2009 at 2:58pm
The schmucks at The Harvard Business School, Goldman Sachs, JP Morgan Chase, Citi are back with a vengence.
Since they were bailed out with socialized capitalism they know they can do it again. And will.
It might take a year or two to notice but Newegg as we knew and loved it will get on its knees and go down on the wall street blood suckers.
Too bad, so sad... take the money and run.
WFUJay
September 28, 2009 at 1:54pm
"The IPO is being underwritten by JP Morgan, Bank of America Merrill Lynch and Citi."
Great. The Federal Reserve/New World Order idiots are taking over Newegg too?
Welp. No more Newegg support from me.
rclamp
September 29, 2009 at 5:38am
What are you talking about? Those are the investment banking divisions of large financial institutions. They sell IPOs, just like Newegg sells electronics and Wal-Mart sells crap.
Why would Newegg choose these banks to distribute its equity? Because they have massive distribution capability. Please stop trying to make ridiculous connections.
ocnier
September 28, 2009 at 1:05pm
The present owners must be whinning about dividend checks. All i can say is be careful what you wish for. There are some definite perks to being a privately held company. Oh well, when money is involved you can't convince anyone of anything. Newegg could definitely suck in a few years because of this. The company is powerful because of its maverick culture in relation to the marketplace. When you go public power changes hands and leadership is replaced along the way. There is a high chance that culture is destroyed. Good news for zipzoomfly though, lol..... Good luck Newegg!!-Cause your about to make a big mistake lol.
std error
September 28, 2009 at 1:39pm
I disagree with your feelings. I think there are a lot of companies that are public that are still very well run with competative prices. There are also private companies that aren't well run that have terrible prices and terrible stock availability.
I agree though that what will determine the outcome is what happens to Newegg's management. Going public doesn't neccesarily mean they will be replaced. And even if they are replaced, is it impossible to think that they could be replaced with an even better team? New and better managers may be enticed by the larger payouts with stock options.
Perhaps the increased access to Wall St. funding will allow us to see a Newegg brick and mortar store one day. One that will compete directly with Frys and make RMAs much easier.
Who knows? Time will tell. If their prices or service starts to go south we can always shop elsewhere.
Buddhistpalm2
September 28, 2009 at 2:17pm
I hope that Newegg will not abandone its core business model -- making profit while providing great deals and service to their customers. And I think that it might be tough to keep that model in mind while shareholders constantly pressuring them to make the quota every quarter. But I hope that I am absolutely wrong in that regard. We shall see ...
jlan86
April 22, 2010 at 7:23pm
I'm still very excited and anticipating Newegg going public, but it could go either way. The only problem with going public is that the majority of the stock will be owned by people who care more about making money than computer culture. All companies make it a priority to make money, but the current owners of Newegg are truly passionate about bringing the best prices and best service to their customers. They could easily charge more to increase their profit, but instead they focus on doing what's best for their customers which results in huge business growth as everyone flocks there, while still remaining hugely profitable. Once you go public, it's all up to the share holders, and all they care about is making money, and if raising prices will maximize their profit, even if it means giving room to other companies in the market, they will do it. We could get lucky and get a lot of stock holders who want the business continue to grow and share the same passion for computer, and have the foresight to see the benefit of growth, but we could also get people who just want to maximize profit.
Connect with MaximumPC
Featured Content
We introduce Intel's latest class of tablet killers and review 4 of the first Ultra...
Where have all the memorable videogame enemies gone?
This month's issue
Feature
11 Hardware Hacks
Feature
Overclock Your CPU
How-To
Supercharge Your Smartphone
Build It
A Powerful $830 Rig
Most Commented Articles
Latest Max PC Tweets
- maximumpc: Analysts: 9-Inch Kindle Fire This Summer http://t.co/QDYApwCZ5 hours 26 min ago
- maximumpc: Micron: DRAM Prices Likely as Low as They're Going to Get http://t.co/fFUWuFOm8 hours 23 min ago
- maximumpc: Yar, Mateys! All Of Pirate Bay Made Available As A Single 90MB Zip File http://t.co/j5LHlXEZ9 hours 37 min ago
