Newegg Files for IPO
9/28/2009 by: Anshel Sag
This morning, we got news through the Wall Street Journal that Newegg is filing for a $175 Million IPO. The idea of Newegg going public may make some uneasy about what may happen to the way that the company is run once shareholders are the main focus. As many know, Newegg prides themselves on having low prices and great customer service. In the past, we have seen companies begin to skimp on customer service once the shareholders began to demand bigger profits and returns on their investments. Some people may also worry that maybe Newegg needs more cash in order to survive and this may also be why they are trying to raise cash through an IPO. Personally, we feel like their whole Newegg Mall venture is somewhat misguided and as far as we can tell has only been halfheartedly employed. This IPO could also be an attempt to increase their investment into Newegg Mall, but that’s merely a guess. If Newegg wants to get investors to bite on this IPO, then they have to make sure they have a firm business footing and newegg.com is what they should be focusing on right now.
Here is a copy of the filing with the SEC which details the companies handling the IPO as well as the opening share price.
Newegg, IPO, Public Offering, Stocks, Expansion, Online Retailer
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