Petsmart.com Pulls Initial Offering
Pasadena-based Petsmart.com withdrew its planned initial public stock offering Thursday, citing unfavorable market conditions.
The online retailer originally filed for the $115-million stock sale in February when there was stronger demand for Internet stocks. Investors have been shunning Internet companies since April.
Phoenix-based Petsmart (ticker symbol: PETM), a retail chain that owns 48% of Petsmart.com, said last month it would increase its stake to 81% in exchange for $30 million. The transaction calls for Petsmart to pay $20 million in cash for the additional shares and contribute $10 million worth of assets, namely its pet catalog unit.
“With our funding, they no longer need the money” from the stock sale, said Lynne Adams, a spokeswoman for Petsmart.
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