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Newegg goes public with a $175M IPO

submitted on September 28, 2009 by YanBz in "Stores / Merchants"
It happened. I like this comment: "That's horrible news. Any company who has to answer to shareholders suffers badly. Their prices will go up and their great customer service, which they're very well known for, will go way down as they probably lay off 2/3 of the CS staff to save money so the shareholders can make more profit. God d*** I hate the public company system."

NewEgg, a consumer-facing online retailer that sells computer components and other electronics, including software, digital cameras, cell phones and laptops, has filed to go public, expecting to raise $175 million, reports PE Hub. Founded in 2001, the company says it brought in $2.2 billion in revenue in the last year alone. That’s a pretty solid figure for a niche site competing with Amazon and Best Buy’s web property, among others.

Insight Venture Partners stands to benefit the most from the potential IPO. The firm sunk $20 million into the City of Industry, Calif. company in 2005, giving it a 12.7 percent stake.

Last year, NewEgg made news when it stopped charging New York State sales tax — something that Amazon still does — in response to customer feedback. Other than that, the site is known for its emphasis on bargains and running much-hyped sales, including a pre-Black Friday sale and its ongoing Shell Shocker sale. Right now it is running a major Fall Sale on everything from televisions to GPS systems.

Clearly tailored for consumers looking just for electronics, the NewEgg site puts lists of new product releases and savings opportunities — including a directory of refurbished products and the 36 best offers of the day. And just like Amazon, it allows you to set up a regular account so that the site can recommend products based on past purchases, and keep track of buying information.


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