Newegg files for IPO
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.
Newegg said in the filing that it expects to face increased competition from other e-commerce sites, pointing to Circuit City Stores Inc (CCTYQ.PK: Quote, Profile, Research, Stock Buzz), the electronics retailer that went bankrupt last year, but whose web site is still active.
The company's largest shareholder is New York-based venture-capital firm Insight Venture Partners, whose portfolio also includes software maker Medidata Solutions Inc (MDSO.O: Quote, Profile, Research, Stock Buzz), which completed an IPO in April.
Newegg plans to use the IPO's proceeds in part to expand operations in China and Canada.
The IPO is being managed by JP Morgan, Bank of America Merrill Lynch and Citi.
Newegg's prospectus did not set the terms or expected timing of the IPO. (Reporting by Phil Wahba, editing by Gerald E. McCormick)
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