Newegg to offer IPO

[Handruin]

I thought this was interesting news:
http://www.reuters.com/article/marketsNews/idUSN288093020090928

NEW YORK, Sept 28 (Reuters) - Newegg Inc, a venture-capital backed online retailer of computer hardware and software, plans to raise up to $175 million in an initial public offering, according to a regulatory filing.

The Southern California-based e-commerce company, which runs the newegg.com website, said in a filing with the U.S. Securities and Exchange Commission that it has been profitable every year since 2001 and generated sales of $2.1 billion in 2008.

 

[Will Rickards]

why would they IPO now? Either they need the cash or they want to expand is my guess. Expand how though, seems like they have great coverage already?
And why go public? A profitable company still held privately? That is great.
Do the owners want to cash out or something? Maybe some of the original investors are pushing for the IPO to cash out.

 

[ddrueding]

Maybe some of the original investors are pushing for the IPO to cash out.

That would be my first guess. It would also be the reason I wouldn't consider buying. If the brains are cashing out, then even if it wasn't time to jump ship, it will behave differently with someone else in control.

 

[Handruin]

I understood it as expanding in different areas (Canada and China) and they're looking to raise cash for this. I agree that I'm also curious why they waited this long to IPO.

 

[LunarMist]

So will service go down the crapper as with many other suppliers?

 

[Mercutio]

I foresee another good company being ruined by MBAs.