June 14, 2019 / 3:12 PM / 3 months ago

CORRECTED-Chewy shares surge 63% in debut as investors bank on booming pet market

(Corrects paragraph 3 to say PetSmart, not Chewy, sold more shares)

June 14 (Reuters) - Shares of Chewy Inc rose 63% in their debut, giving the online pet products retailer a market value of $14.35 billion, more than four times the price PetSmart paid for the company in 2017.

The shares opened at $36, above their initial public offering price of $22.

Indicating solid investor appetite for a piece of the $70 billion U.S. pet industry market, the offering was priced higher than the expected range and PetSmart sold more shares than originally planned.

Chewy raised $123.2 million from the offering and parent PetSmart will receive nearly $900 million.

The online retailer of puppy shampoo and cat treats plans to use the funds to grow its pharmacy business and build its private brands. (Reporting by Manas Mishra and Tamara Mathias in Bengaluru; Editing by Sriraj Kalluvila)

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