Newegg.com Files for IPO

Online electronics retailer Newegg Inc., which only operates through the Internet, has decided to file for an initial public offering and raise $175 million. With the money from its IPO, Newegg hopes to repay its debt, expand its operations, and fund capital spending, three essential components for Newegg’s plans.
 
According to the California-based company, Newegg has been profitable every year since its launch in 2001 and has experienced rapid growth since then. Newegg had sales of $2.1 billion in 2008, according to a regulatory filing, and a net income of $15.8 million for the first half of 2009, which is up 21 percent from $13 million a year earlier.
 
Newegg has also been focusing much attention on growing its business in China recently, focusing on technology, consumer electronics products, and household appliances. According to Newegg, China and the rest of its international opportunities will eventually become important driver’s of the company’s growth, and it hopes to invest $25 million from its IPO funds to expand its international operations.

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