Online retailer Newegg today announced plans to go public, filing for a $175 million IPO, according to an SEC filing.
Newegg is best known as a technology e-tailer, but has expanded of late to include other consumer electronics. Since launching in 2001, the company has been profitable every year, with $2.1 billion in sales in 2008. In 2007, the company saw $1.9 billion in sales, with the number expected to increase as Newegg expands its business.
The company has seen dramatic success after making changes to support small- and medium-sized businesses in the United States. Newegg also has its sights outside the United States, with China expected to be an important step in the company’s continued expansion. Furthermore, Canada also is expected to be a big market for Newegg, with many Canadians long requesting to be able to make purchases from the site.
The company does have to deal with several issues in the immediate future, including a patent infringement lawsuit filed by Soverain Software, according to the IPO registration filing. If Soverain is successful in getting an injunction against Newegg, the company may be forced to “stop or alter certain of our business activities.”
In the future, Circuit City — although its physical stores went bankrupt, a liquidator purchased the company’s online business and keeps it running — will lead the charge of online businesses that aim to derail Newegg.
The IPO will be handled by Citi, JP Morgan, and the Bank of America, with Newegg’s largest shareholder, Insight Venture Partners, also completing another IPO earlier in the year.
