Newegg formally withdraws its IPO
The online retailer will continue to look at other funding options.
As it turns out, personal computer and consumer electronics retailer Newegg Inc. won’t be going public anytime soon.
Newegg, No. 12 in the Internet Retailer Top 500, filed paperwork Friday with the U.S. Securities and Exchange Commission, to formally withdraw its registration of an S1 filing. The S1 is a document including financial disclosure and plans for use of the proceeds that companies file with the SEC when they hope to raise capital through an initial public stock offering.
Going forward, Newegg, which grew web sales 8.7% to $2.5 billion in 2011 from $2.3 billion in 2009, will look at other strategic options, says general counsel Lee Cheng. “We will continue to evaluate our options,” he says.
Newegg originally filed for an IPO in September 2009, but hasn’t updated any of its S1 filings since March of 2010, a check of SEC records shows. “It’s been a while since this was updated,” says Cheng. “Formally withdrawing the registration was more of just a technical step.”
When Newegg filed for an IPO almost two years ago, the company said it hoped to raise $175 million from the sale of up to 14.1 million shares at a minimum of $12.36 per share. The company, which carries an online inventory of more than 33,000 products and 84,000 SKUs and has been selling on the web since 2001, would have used the proceeds for general expansion, including $25 million to build an Asian headquarters and a regional warehouse, fund operating expenses in China, and improve the logistics infrastructure of its Canadian operations.